MASTER 

NEGATIVE 
NO .  94-82205 


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Author: 


U.S.  Dept.  of  Commerce 


Title: 


Far  Eastern  markets  for 
railway  materials... 

Place: 

Washington,  D.C. 

Date: 

1919 


qg-^^^os  A 


COLUMBIA  «.\ivj:.3:7v  .i^  "AF  :<-o 

PR£SERVa"''Gi\  ^iVi3jC\ 

BiBLioGRAPhic  mkcrofc!r:\/:  target 


*.hS-ZF  neqat.ve  # 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


U.  S.    />«;7^.  oflcQmmerce. 

...  Far  Eastern  markets  for  railway  materials,  equipment, 
■nd  supplies,  by  Frank  Rhea,  trade  commissioner  . . .  Wash- 
ington, Govt,  print,  off.,  1919. 

S39  p.  Incl.  1  lUus.,  tables,    front.,  fold,  map,  plates.    25*''". 

At  head  of  title:  Oepartment  of  commerce.  Bureau  of  foreign  and 
domestic  commerce.  B.  S.  Cutler,  director.  Special  agents  series — 
no.  180. 

Most  plates  printed  on  both  sides. 

Appendixes:  1.  Directories.— 2.  Chinese  eastern  railway.— S.  Peking- 
Hankow  railway. — 4.  Peking-Newchwang  railway.- 5.  Canton-Kowloon 
railway. — 6.  Tlentsin-Pukow  railway. — ^7.  Pauling  &  co.  loan.— 8.  Huku- 
ang  railways.— 9.  Ssupingkai-Chengchiatun  raUway. 

X-  Railroads— East  (Far  East)— Equipment  and  supplies.  2.  Rail- 
roads— China — Equipment  and  supplies.  3.  Railroads — Japan — Equip- 
ment and  supplies.  4.  Railroads — Korea — Equipment  and  supplies. 
5.  Railroads— Philippine  Islands— Equipment  and  supplies. 

^Rhea,  Frank,    ii.  U.  S.      ^^^     Bureau   of  foreign   and  domestic 
commerce  (Dept,  of  ^H      commerce)     in.  Title. 

Library  of  Congress  ^^       HD9712.U52A4    1919 
Copy  2.  is20j2i  19—26846 


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Colnintria  (Snikientftp 

LIBRARY 


School  of  Business 


*thlB  book  is  due  two  weeks  from  the  last  d«te 
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DEPARTMENT  OF  COMMERCE 

BUREAU  OF  FOREIGN  AND  DOMESTIC  COMMERCE 

B.  S.  CUTLER,  Director 


SPECIAL  AGENTS  SERIES— No.  180 


FAR  EASTERN  MARKETS  FOR  RAILWAY 
MATERIALS,  EQUIPMENT,  AND  SUPPLIES 


FRANK  RHEA 

Trade  CommissioiMr 


PRICE,  35  CENTS 

Sold  by  the  Superintendent  of  Documents.  Government  Printing  Office, 

Washington,  D.  C. 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1919 


MIMMlii 


^v«#<^ 


Zjma^^"^^ 


CONTENTS. 


Page. 

Letter  of  submittal 15 

Part  1.— CHINA. 

Introduction 17 

I.  General  information ]g 

Geographical  location  and  area ig 

Climate . . . . , jg 

Population jg 

Language 19 

Weights  and  measures 19 

Currency  and  foreign  exchange 19 

Agriculture  and  pastoral  pursuits 23 

Mineral  production 24 

Coal 24 

Iron 25 

Other  metals 26 

General  manufacturing 26 

Railway  manufacturing 27 

II.  Chinese  commerce 29 

General  conditions 29 

Imports  and  exports 29 

Likin 29 

Tariffs 3^ 

Treaty  ports 3^ 

Concessions  and  settlements 3]^ 

Trade  laws 32 

Trading  centers 32 

Industrial  centers 32 

III.  General  transportation  conditions 33 

Primitive  means  of  travel 33 

Character  of  Chinese  highways 33 

The  Great  Wall '**'"']!!!!^!^^'*!!!  34 

Coastal  carriers 3^ 

River  and  canal  carriers _  _  34 

Development  of  Chinese  railways 35 

Historical  survey 35 

Introduction. 35 

Period  from  1863  to  1894 35 

Period  from  1895  to  1905 .'.'.*.'  37 

Period  from  1906  to  1911 ."  37 

Development  in  recent  years .• 3g 

Spheres  of  influence 4^ 

Railway  map  of  China 42 

Classification  of  existing  lines 42 

Gauge ]!]!]!]]]  44 

Proposed  new  lines 44 

Railway  agreements 46 

3 


CONTENTS. 


CONTENTS. 


IV.  Chinese  Government  Railwava 

Introduction 

Investment  aaaets '*.'*.'''"'" 

Construction  costs 

Operating  revenues 


Page. 

52 

52 
53 
55 


Interest  charges  and  taxes., '  * ^^ 

Surplus  or  deficit 57 

Organization  and  activities"  of  Mini^tr';  o*f  C^mmunkaVions ?« 

Development  and  general  functions  ^^ 

Accounts 58 

Purchases [[[[ 5'J 

Construction  of  new  lines ".*..' ^^ 

Regulation  of  fares  and  rates.  .'.'.* .' ^^ 

Passenger  fares 60 

Preightratea 61 

Organization  of  Chinese  Go;;;Bmeni  Railways I'f 

rurchaseof  stores  by  railways..  ""^ 

Operating  methods .....T. ^^ 

Signaling 68 

Construction  and  maintenance  methods' ^* 

Boadway  and  bridge  materials ^^ 

Bridges.. ' 72 

Buildings .*.'.'..'.'."* ^^ 

Crossties 72 

Bail, --.-^ -.'**.'.' *.***.' ' 73 

Rail  faatenings .""***" ^^ 

Frogs  and  switches ,' ' ' 74 

Rail  anchors ' "        74 

Amount  of  rolling  stock.  ..*''...... ^^ 

General  characteristics  oi  rolling  "stock."  .".*.* ^^ 

Locomotives 77 

Train  brakes _   ' 78 

Puiaenger  equipment .*..'....* ^^ 

Freight  cars ''}" 79 

Car  wheels 79 

80 

_ •- 80 

Histo,rical  survey " ' — 80 

Source  of  capital. .'..',' ' 81 

Present  control **.'.'.'.*" ^^ 

Character  of  t,rafric .'.'*.".'**.* ' 

Present,  nrnfif,a  ' " " 


Servi,ce  cars 

Peking-Mukden  (Ching- Feii^*  Rail^;; 

Location  and  extent 


82 

Present  profits * ' '" " 82 

Roadway  and  track  materials"  .*.*.".'."". '  * ' " "  ^^ 

Rolling  stock 83 

Workshops , ' 83 

Tangshan  Railway  and  Alining  ColWe* " ^^ 

Organization  and  personnel ^^ 

Purchase  of  stores 84 

Peking-Suiyuan  (Kin-Sui)  Railway. .*.'].".'.'.'.' ^^ 

Location  and  extent. ^^ 

Historical  survey .'.".'.'."."."." ^^ 

Source  of  capital ^5 

87 


IV.  Chinese  Government  Railways— Continued. 

Peking-Suiyuan  (Kin-Sui)  Railway— Continued. 

Present  control 

Class  of  traffic 

Present  profits  and  outlook  for  future 

Extensions 

Roadway  and  track  materials 

Rolling  stock 

Workshops 

Organization  and  personnel 

Purchase  of  stores 

Tientsin-Pukow  (Tsin-Pu)  Railway 

Location  and  extent 

Historical  survey 

Source  of  capital 

Present  control 

Class  of  traffic , 

Present  profits  and  outlook  for  future , 

Extensions 

Roadway  and  track  materials 


Page. 

87 

87 

87 

88 

..............  88 

89 

...............  o9 

89 

89 

89 

90 

90 

90 

91 

91 

91 

Rolling  stock 92 

Workshops 92 

Organization  and  personnel 92 

Purchase  of  stores. 93 

Peking-Hankow  (Kin-Han)  Railway 93 

Location  and  extent 93 

Historical  survey 93 

Source  of  capital 94 

Present  control 9  ^ 

Class  of  traffic 95 

Present  profits 95 

Roadway  and  track  materials 95 

Rolling  stock gg 

Workshops 9^ 

Organization  and  personnel 95 

Purchase  of  stores qjj 

Cheng-Tai  (Shansi)  Railway 9^ 

Location  and  extent 93 

Historical  survey 93 

Class  of  traffic - 97 

Present  profits  and  outlook  for  future 07 

Roadway  and  track  materials— Rolling  stock ■ 97 

Workshops t^g 

Organization  and  persomiel 93 

Purchase  of.stores 93 

Taokow-Chinghua  (Tao-Ching)  Railway ps 

Location  and  extent oq 

Historical  survey ^^-^^^l!'*'"'";;^^;;;;!];"  93 

Present  profits  and  outlook  for  future 99 

Materials  and  equipment— Workshops 93 

Organization jqq 

Purchase  of  stores. iqq 

Kaifeng-Honan  (Pienlo-Lunghai)  Lines 100 

Location  and  extent 100 

Historical  survey 100 


CONTENTS. 

IV.  Chinese  Go.verii,in.eiil  Railways—Continued 
Kaifeng.Ho,ian(Pienlo-Li,^ 
viftss  01  traffic. 

Present  profits  and  outlook  for  future 

Roadway  and  track  materials-Rolling  Btocklworksh 

Organization  and  personnel 

Purchase  of  stores ' ' 

Shanghai-Nankin.o:  (Hu-Ning)  Railway.'.".* ' " " ' ' 

Location  and  extent 

Historical  survey 

Present  cintrol. '[[[] 

Class  of  traffic ' 

Present  profits  and  outlook  for  future^ '. 

Rcadway  and  track  materials , . ."  .'.*. ' ' 

Rolling  stock *. ' 

Workshops 

Organizati«ui ' 

Purchase  of  Htf'ires ' 


ire. 


fihanghai-HangcIiow-Ningpo  (IIu-Hang-l^Jn.^  Railwav' " " " " 

Location  and  extent , ' 

Extensions  suggested 

Historical  survey '  *, 

Present  control  and  ortfanization 

Class  of  traffic— Out I( K.k  for  iuUie'.l '. *  *  *  * 

Roadway  and  track  materials. ....'.' ^  ^ .' 

Rolling  stock 

Workaliops "' 

Purchase  of  stores ' " 

C*nton-Hankow  (Yiieh-IIan,)'  Raii^v  "f^ysteni" ' 

Location  and  extent '.  _ '  " 

HMtorical  sun-o}- 

Source  of  capital  and  present  control 

Claw  of  traffic. , 

Present  earning  capacity  ami  m^,ook  for  futui 

Koadwa}-  and  track  materials 

Rolling  stock 

WorkshoM.. . 

Organization  and  personnel '  ]  ] '  * ' 

Purchase  of  stores ' '  *  * 

Cant^jn-Kowloon  (Cliui-Kuang)  Eailwav'(f'hirim>  Fec-tirm) 

Location  and  extent 

Historical  8ur\-ey., '*""'"." • 

Operating  revenues  and  expenses .  ' ' ' 

Roadway  and  track  matenals-Pu,.Hirj Vtrck 

O'l^ganization— Purchase  of  st.  ires .  . 
Canton-Kowloon  Railway  (British  .-■ectirn).V.^i^ ' 

Historical  8ur\-e}- "' ' 

Earning  capacity ' " " 

Roadway  and  track  matoriaJs-R-^aline  sh  rkl^...\Vr  'ri'^u  rV  " 

Admmietrati >n  and  purchsFc  of  stc-res'  "'"         ' 

ien  (Chang-Hsia )  Railway:  Changchow-Anmv 

Location  and  extent . . , ,  '   

Historical  8ur\^ey * '  * 

Operating  revenues:  and  expenaes^Fu  ture'prr'^'rcci" J 

Roadway  and  track  materiale-B,olIing  st*  ;ck 
Administratioii  and  purdiase  of  stores. ...     


Page. 

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J17 
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118 


CONTENTS. 

V.  Chinese  private  railways 

Sunning  (llsinning)  Railway 

Location  and  extent 

Historical  survey 

Roadway  and  track  materials— Rolling  stock— Workshops. 

Administration  and  purchase  of  stores 

Swatow-Chaochow  (Chao-Shan)  Railway 

Location  and  extent 

History 

Earning  capacity 

Equipment — Administration 

VI.  Chinese  provincial  railways 

Introduction 

Kiangsi  (Nan-Shan)  Railway 

Location  and  extent 

Historical  survey 

Traffic  and  profits _  ^ 

Equipment  and  purchases 

Nanking  City  Railway 

Location  and  extent _ 

History 

Equipment  and  traffic 

VII.  Chinese  industrial  railways 

Introduction 

Tayeh  Railway  (Han-Yeh-Ping  Co.) *.'.'.".'.'.'*.*.' 

Location  and  ownership 

Traffic  and  equipment 

Management 

Kailan  Mining  Administration  Railways (Kaiping  coal  field). . . 

Location 

Historical  survey 

Output  of  mines— Numher  of  employees , 

Management 

Extensions  and  improvements 

Tai-Tsao  Railway  (Ching  Using  Coal  Co. ) " 

Vlll.  ioreign-concession  railways 

Introduction 

Yunnan  (Tien-Yueh)  Railway "....... 

Location  and  extent 

Historical  survey 

Extensions  contemplated 

Materials  and  equipment " 

Management  and  purchases *****.......""' 

Sliantung  (Santo)  Railway *''"*** 

Location  and  extent ^  ^ 

Historical  survey 

The  port  of  Tsingtau ..........'.* 

Class  of  traffic 

Profits " ' 

Possible  extensions *  * 

Roadway  and  track  materials .....'."*** 

Rolling  stock '...*..  1 '.'. ." 

Workshops * 

Organization  and  management 

Purchases 


Page. 
Ill) 
119 
119 
119 
120 
120 
120 
120 
120 
120 
121 
122 
122 
122 
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122 
122 
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123 
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124 

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131 


132 
133 
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135 


8 


CONTENTS. 


CONTENTS. 


9 


IX.  Tramwaw 

Introduction , '.'.'.'.7.'. 

Tientsin  tramways. .'.'."*.*."'.'.'"* 

Slianghai  tramways [[[]] ' 

Hongkong  tramways. 
Peak  tram,wavs. . . 


Part  2.— JAPAN. 


Pag©. 

i;:6 

lull 

ISO 
137 
139 
139 


Introduction 

1.  General  information '.'.'.'.','.'.]'.'. ' ^"^^ 

Geograpliical  location  and  area*  *.".*." ' ' ^^^ 

Population , 143 

Climate 143 

Agriculture  and  pastoral  pursuits      ^^'^ 

Mineral  production ''' ' ^-44 

Coal ^* ■ 144 

Iron 144 

Copper  and  other  minerals" '  * ' ' ' ' ^'^'^ 

General  manufacturing. . .                        ^^'^ 

Manufacturing  of  rail  wa>'  equipment ^'*^ 

II.  Commercial  and  industrial  conditions. . . ' ' ^^^ 

Domestic  commerce , ,, [ ' ^^^ 

Exports  and  imports                     ^47 

Tariffs ..*.'.'*.***"** ^^'^ 

Trading  centers ] ' ■ 147 

Industrial  centers. *" ^^"i^ 

Industrial  labor , ' '  *  * ' ' 147 

_       'Railway  employees  and  wages* ^'^^ 

ML  General  transportation  conditions ' "  .* ^^^ 

Coastal  sMpping 151 

Highways , *" " 151 

Character  and  develnnmont  ^.f  r<,^^ -. 151 

,„      J""  "«^«?Jopment  oi  Japanese  railways ,., 

CIa8sili,cation 151 

Historical  survey 151 

Nationalization  of  railways "  ^^^ 

^\'idening  of  gauge '. . .  .*.*.''  .*".*'.*.* ^^^ 

Japanese  railway  policy   .         ^^^ 

Government  control  and  regiihiti^n*  V  * " ' Jf  ^ 

Construction  program ■''^^ 

IV.  Imperial  Go\-ernment  Rail wavs  of  Janan ' ^^^ 

Extent...,.., .; ^ 157 

ganization  and  operating  methods '  * '       ^^^ 

^ 157 


Traffic  and  rates. 

Ocean  ferrv  «Arv-iV.<^ 


Ocean  ferry  service .  158 

Budget  a,nd  accounts V.V."  *  * .'.'.'.' ^'"^^ 

Investment  asseta ,' * '  * ' 159 

Earnings  and  e.i,pen,ses " ' ." ^^*^^ 

Net  income  and  surplus ^^^ 

Roadway  and  track .'.'.',.**."*' ^^^ 

Locomotives [[[ ' ' 16 1 

Passenger  cars ' '-  1^2 

s  wagons , _'*_'*' ' 163 

ice  cars , 163 

Workshops _'  *  _'_\' 163 

Personnel "^ * 163 

Steeaaiid  purchases..*.".".'.' '^^ 

* 164 


Page. 

V.  Private  railways  and  light  railways 166 

Introduction 166 

Construction  cost  and  capitalization 166 

Operating  results  and  profits 166 

Employees  and  wages 168 

Officials— Purchases 168 

VI.  Tramways 169 

Introduction 163 

Extent  of  lines 169 

Historical  survey 170 

Construction  cost  and  capitalization 171 

Traffic  and  rates 171 

Earnings  and  expenses 172 

Employees  and  wages 172 

Roadway  and  track 172 

Rolling  stock 173 

Power  plants  and  substations 173 

Officials — Purchases 173 

Part  3.— CHOSEN. 

I.  General  introduction 175 

Introduction 175 

Products  of  the  country 175 

Exports  and  imports 176 

Manufacturing 170 

Trade  centers 17G 

Labor  conditions 176 

Railway  situation 177 

II.  Korean  Government  Railways 178 

Introduction 178 

Extent  of  lines 178 

Historical  survey 178 

Extension  under  way 179 

Construction  cost— Capitalization— Per formance  statistics V60 

Organization  and  op3rating  methods 181 

Traffic  and  rates 181 

Earnings,  expenses,  and  profits 182 

Employees  and  wages 182 

Roadway  and  track 134 

Locomotives i84 

Passenger  cars I84 

Freight  cars igj 

Workshops 185 

Officials— Purchases , I86 

III.  Kort  an  light  railways  and  tramways 187 

Introduction I87 

Keijyo  (Seoul)  Electric  Co I88 

Zenhoku  Light  Railway  Co 188 

Korean  Gas  &  Electric  Co 18  i 

Kanko  Coal  Mining  Co 189 

Korean  Light  Railway  Co 18;J 

Industrial  tramwajs 189 


I'O 


COJN-TENTS. 


Part  4.-MANrin'RrA. 

I.  General  information . , 

II.  Manchiirian  railways' '""'*'''." ' ' 

South  Manchuria  Railway  Co  .**.''"" 

Iiitrociiiction''^~-Ex,tent  of  lines' ' 

Financial  8tati«,tic8^0p.rating  reaults;  ] ; 

Oiitside  undertakings. '. . .  '  * 

Historical  survey-...- Organization ' 

Operating  m,ethods ' 

i  onstruction  coef s  and  rt n i  t .1 1  ; ,. , ,    *.        ^    ' 

1  raihc  an,d  rates 

Earnings,,  expensrs,  and  pr()fits' 

Results  of  outside  undertakings.  .".'.*' " 

Employees  and  wages ?..*'*" 

.Roadway and  track ','.','.'.'" " " 

Locomotives. '  * 

.Passenger  cars ' 

Pteiglii  cars. .  

Working  equipment  ' 

"'  orkshops 

.Purchases ' 

Kirin-Changdiun  Railway.  .'.*." ****.' *.*.'.'.*.' " 

Location  and  extent .' ' 

Historical  survey 

O>nstrurtion  cost  and  investment  as8.pt8 

I^  unds  and  control "       ' 

Extensions  suggested ...     ' 

Traffic :; _'* ■ -■ 

Earnings  and  expenses  ..'.""*." " ' 

Income  charges  and  lews.. 

Roadway  and  t rack , .  *  *  * 

Rolling  stock., . ., ' 

Worksliops ' 

Officials-- Purchases'  .'*"**''*'"        

^      Signing  of  Contract  for  Kirin-Hwcin'in^' pV;i " " 

Sflupmgk,ai~< lengchiatun  Railway .       **^*;'"^^8^  ^^'^'' 

li<>c'ation  and  extensions 

HisCctrieal  survey ' 

.Funds  and  control ...        * ' 


IfU 

.     m 

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196 

198 

19.S 

198 

1 9. J 

200 

200 

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202 

202 

203 

203 

203 

205 

205 

it-  Of.) 

200 

206 

206 

207 

207 

207 

207 


208 


ay . 


(;^.)usf:roction  cost  and  capital  liahU iu;.; 

.Roadway  and  track 

Rolling  stock .\\"  *  * ' 

Worksliops '         

Traffic  and  earnings 

Officials Pur(„-hases.,... .  * ' 

Russian  ,railwa}-s  in  ,Manchuria  aiid'.U^r'..V,."  <i'i"' ' * ' 

In tiY.* I ......  1 C.^  eastern  bibena 

1, 1.1  u, (,«,  1,  u(  I,  ion 

The  port  of  Vladi vost^i  'IIH ' ' 

Conditions  at  ,Harl„)in *****' 

Fi,nance8,  ,maiiagenieiir,  and  f.'nnin..nAnf"lf  r ' ' " 

Crii.«f ,.„ ..( :  .       .         '  ^' *I>"i' 'Jit  ot  lines 

C<..)nM,niction  cost  and  capital  liabilities 


208 

208 

210 

210 

210 

210 

211 

211 

211 

212 

212 


213 


les 

3 


Traflie 

Oi^aiiization  a,n,d  opc^rating  me.,.,..,.. 

.Koad  way  and  t,raek ^ 

Rolli,ng  stock [, " ■ 

Workshops , 

Oficwb-Purch-ases' '. 


215 

215 
215 

^  1(1 

210 
216 
216 
2RJ 
217 


CONTENTS. 

IV.  ^fanchurian  and  Vladivostok  tramways 

Dairen  and  Fushun  tramways 

Mukden  horse  tramways 

Vladivostok  tramways 

Tsitisihar  (Angangki)  Light  Railway 

Part  5.--PHILIPPINE  ISLANDS. 

I.  General  information 

Introduction 

Area  and  popiilation 

Agricultural  and  pastoral  products ' 

Forestry  products 

Mineral  products 

Manufacturing 

Commerce 

Ports  and  trade  centers 

Coastal  shipping 

General  railway  situation 

II.  Manila  Railroad  Co.  (Ltd.) 

Location  and  extensions 

Present  ownership  and  control 

Historical  survey 

Capital  obligations 

Investment  assets 

Traffic ^ 

Working  results  and  lose 

Operating  methods 

Employees  and  wages 

Roadway  and  track 

Locomotives 

Passenger  and  freight  cars 

Workshops ^ 

Organization 

Purchases 

III.  Philippine  Railway  Co 

Location  of  lines — Source  of  capital 

Historical  survey— Capital  obligations 

In \estinent  assets 

Traffic 

Working  results , 

Employees  and  wages 

Roadway  and  track 

Locomotives 

Passenger  and  freight  cars 

^\'orkshop3 

Purchases 

ly.  ^Faiiila  Electric   Railroad   &   Lighting   Corporation— Manila   Suburban 
Railways    Co. 

Location  and  extent 

Source  of  capital  and  present  control / 

Historical  survey— Capital  obligations 

Investment  assets 

Traffic  and  other  business ^  * 

Working  results 


Page. 
218 
218 
218 
218 
219 


221 

221 

221 

z2Z 
999 

223 
223 
223 

225 


226 
227 
227 
227 
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229 
229 
230 
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231 
232 
233 


234 

234 
235 

235 
235 


236 
236 
237 
237 
237 
237 
238 

239 
239 
239 
239 
240 
240 
240 


12 


CO^NTENTS, 
.  Manila  Electric  Railmiid  *i  T  ii»^.f,-r,^  n,,.       j.-        ^ 

Killing  stock ' 

Worksliopa—Organization. . .','','.'.'.'.'.'.[ ' ' 

P'urcliases ,  * 


Fart  6. -CONCLUSIONS  AND  SUGGESTION'^ 

Past  progreia: , , '  ■  -  - 

Future  prospects , ■•••--       , 

CoiBoIkktioii  of  Chinese  Goi^nmeiit'  RaOways 

IVograin  of  construction ' ■ 

Cltt»cter  of  lines ' '  * ' 

Roiil way  and  ec|nipment  standards*  '.'.'.'.',"."*.'.".".'.' ' 

*  inancing  extensions  and  bettermenfa.  ' ' 

Bii}iiig additional  equipment "** ' ' 

Kind  and  amount  (.f  equipment  needed .'. '" ' 

Work  equipment  needed 

^%arf  and  harbor  equipment.... '.'.'*.'."."**        ' 

Shop  machinery  and  tools '*'"*" 

Electrified  light  railways  and  short-line"  tramways" " * *  *  *" 

Organization  and  methods  of  operation  " ' 

Foreign  experta  in  Chinese  railway  sef vice ' " 

Rolling-stock  specifications , . .'. ""  ' ' '  *  *  * ■ 

Contracting  and  coMtruction  plant]  I'^'^'Z " " 

Bridge  and  building  materials *.*.'.'  ' 

Coal  and  water  etatiom ]  

Commodity  handling  plantar.'.'.'.*  ***.'*"'  ' "•■• 

•Rail  and  fastenings .'..'.[[[', 

I'rosstiea  and  timber '.I'.'.'.l'.'.'.',' " 

Feociiig  niaterials •-•••• 

Frogs  and  switch,e3 ,*]"]]**' " " ' 

Roadway  and  track  tools *.''**""**,'.'  

Signals  and  telephones [[][ ' ■ 

Oils  and  storage. H] ' ' 

Business  metlioA *.*.*. * .*  *.*.".'*." ' ' 

Representation 7.'*.'.*  

Chinese  students,  in  United  States.'.  ']*.'*]*]'*'] 

Distribution  of  catalogues 

Technical  and  otlier  useful  publicatlo'iis*.'.'.'.*  [  *  * "  " " 


Appexdix  1.- 


-DIRECTORIES. 

p!ZrMir°J^'  ^r^'-  ^^""^  of -CoMmunications 

1  eiiiig~:Mu,kden  (Chmg-Feng)  Railway. . 

Pekiiig-Suiyuan  (Kin-Sui)  Railway. .  ' 

Tientsin-Pukow  Railway ,....'.'*** ' " 

Cheng-Tai  (Shansi)  Rail  way'.'.** '.". '  ' ' 

Peking-Hankow  Railway, .".' '  ' " ' 

Shangliai-Hangchow-Ningpo  aiu-Hang^;,;;g)'  ^i^Z. 

W«.o,gliai-Nanking  (Hu-Ning)  Railway  

Kaifeng-Honan  lines. , '  "        ' ' 

Hukuaog  (Han-Yiieh-Chnan)'  RaUwaya  *Z'  "' " ' 

Clunese  provincial  railways  "  

'Canion-Kowioon  (chui-KMiing)  Railway::::::::::::::::;::::::::; 


Page. 
241 

242 
242 

243 
243 
243 
244 

2^16 
248 
248 
24J) 
249 
249 

250 

251 

251 

if  52 

252 

253 

254 

254 


255 

255 
255 
255 

256 
256 
25(i 

257 
257 
257 
259 
2G0 


2Ga 


2«1 
2G2 
202 

203 

263 

20  J 

204 

20  J 

265 

200 

267 


CONTENTS. 


Chinese  private  railways 

Chinese  industrial  railways 

Foreign  railways  in  China 

Tramways  in  China 

Imperial  Government  Railways  of  Japan 

South  Manchuria  Railway  Co 

Kirin-Changchun  Railway 

Ssupingkai-Chengchiatun  Railway 

Manila  Railroad  Co.  (Ltd.) 

Philippine  Railway  Co 

Manila  Electric  Railroad  &  Lighting  Corporation 


Appendix  2.— CHINESE  EASTERN  RAILWAY. 

Agreement  for  the  construction  and  operation  of  the  Chinese  Eastern  Railway. . 
Agreement  concerning  Southern  Manchurian  branch  of  Chinese  Eastern  Rail- 
way.   

Statutes  of  the  Chinese  Eastern  Railway  Co 

Appendix  3.— PEKING-HANKOW  RAILWAY. 

Loan  for  the  railway  from  Lukowkiao  to  Hankow 

Additional  protocol  to  the  contract  relating  to  the  loan  for  £4,500,000  for  the 

railway  from  Lukowkiao  to  Hankow 

Loan  contract 1 . . . 

Operating  contract : 

Contract  for  the  supplementary  loan  for  the  purpose  of  completing  the  line 

from  Peking  to  Hankow 

Appendix  4.— PEKING-NEWCHWANG  RAILWAY. 

-Preliminary  agreement  between  the  Hongkong  &  Shanghai  Banking  Corpo- 
ration and  Director  General  Hu,  respecting  the  Peking-Newchwang  Rail- 
way loan. 

Defmite  agreement  between  the  British  &  Chinese  Corporation  (Ltd.)  and 
Director  General  Hu,  respecting  the  Peking-Newchwang  Railway  loan.... 

Appendix  5.— CANTON-KOWLOON  RAILAVAY. 

Agreement  between  the  Waiwupu  (Board  of  Foreign  Affairs  of  the  Chinese 
Government)  and  the  British  &  Chinese  Corporation  (Ltd.)  for  the  issue 
and  regulation  of  a  loan 

Appendix  G.-TIENTSIN-PUKOW  RAILWAY. 

Railway  agreement 

Appendix  7.~PAULING  &  CO.  LOAN. 

Agreement  providing  for  the  financing  and  construction  of  a  railway 

Supplementary  agreement  providing  for  cancellation 

Appendix  8.— HUKUANG  RAILWAYS. 

Final  agreement 

Dispatch  from  the  Minister  of  Communications 

Reply  of  the  banks 

Memoranda  of  September  12,  1913 

Memorandum  of  procedure  for  the  transfer  and  expenditure  of  funds 

Appendix  9.— SSUPINGKAI-CHENGCHIATUN  RAILWAY. 

Agreement  for  construction 


13 

Page. 
267 
268 

268 

268 
269 
270 

272 

272 
272 
273 


274 

276 
278 


283 

285 
286 
2S1 

293 


294 

295 


299 


300 


312 
320 

329 
330 
331 
332 


334 


'ilL' 'Si' 


'CONTENTS. 


1. 
2. 
tj> 

4. 
5. 

7. 

o 
O. 

if* 

10. 

.  JEit  Jl  ■* 


14. 

i.D''. 

17, 18. 
19'. 

iSfIa 

21. 
22. 
ZJ. 
24. 
25. 

27. 

28,  29. 

32 J  33. 

37. 
38. 

Sir  • 

40. 
41. 

4tK 


ILLUSTRATIONS. 

Facing 

Central  Station.  Tokyo,,  Japan,. . ., 

Railway  map  of  China. • -  -  -  -  • • ■ 

Tsinanfu  station  on  the  German  section  of  the  Tieiitsin-Pukow  Rai,l- 

way • ■ ■ 

Tsinanfu  station  on  the  Shantung  Railway , , , 

Tientsin  station  of  the  Peking-Mukden  Railway 

Chinese  post  office  at  Tientsin • - .  • 

Typical  way  station  on  the  (ierman-bnilt  railways  in,  China 

Typical  way  station  on  the  Chinesc-l)uilt  reking-Suiyuan  Railway. . . 

Overhead  footbridge  between  track,8  at  Tsinanfu  on  the  Tientsin- 
Pufcow  Railway - 

O'verhead  footbridge  between  tracks  at  Tangshan  -on  the  Peking- 
Mukden  ,Railway • 

Typical  Chineee  .graveyard  at  Tangshan . . ,. , 

Bridge  on  the  French  Yunnan  Railway,  showing  stringer  track  con- 
8tructio,n. •  - ■ 

Bridge  on  the  Peking-Hankow  Railway  after  1917  floods. . , 

Steel  ties  (sleepers)  of  Belgian  manufacture  on  the  Canton-Samshui 
Railway • r  ■ ■ 

Steel  tiee  (sleepers)  on  the  ,Fre:ncli,  Yunnan  Railway,  Indo-China 

linee........ -..■ •. .• ■ 

ai,iiie8e  standard  section  of  action text  figure  on  page. . 

Typical  exani,ples  of  signaling  on  the  Chinese  Government  Railways. . 

,Device  used  on  the  Peking-Hankow  Railway  in  an  attempt  to  prevent 
croBsties  from  checking -  •  -  - 

Tjrpical  ewitch,  switch  stand,  and  rail  fastenings  on  the  Peking- 
Hankow  Railway • ■  •  - 

Derail  and  rail  ,fa8tening8  on  the  Peki,n,g-,Hankow  Railway. . , 

Locomotive  on  the  Peking-Hankow  Railway - 

Freight-caj*  truck  on  the  Peking-Hankow  Railway , 

,D,ining  car  on  the  Peking-Mukden  Railway 

Platform  baggage  truck  on  the  Peking-Hankow  Railway 

Type  of  box  car  need  on  the  Chinese  CJovernment  Railways 

Type  of  tank  car  for  handling  refined  petroleum  products  on  the 
Chinese  Government  Railways ' 

Four-wheel  gO'Ods  car  and  caboose  on  the  Shantung  Railway 

,Low-Bide  gondola  car  on  the  Shantung  Railway 

Special  car  for  handling  bulk  lime  on  the  Shantung  ,Railway , . . 

Tramway  cars  and  trailers,  Tientsin • • ' 

Raillese  trolley  care  in  Shanghai ■ -- 

Multiple-unit  electrified  equipment  used  in  Tokyo  suburban  district. 

Japanese-built  superheater  locomotive • 

Section  of  goods  train  on  Japanese  Government  Railways 

Locomotive  drawing  Baguio  Special,  Philippine  Islands 

Baguio  Special  leaving  station • • 

Oldest  type  of  Philippine  thkd-claa8  passenger  car  (side  entrance)... 

Typical  Philippine  four-wheel  goods  wagon. 

Sheltered  waiting  station,  Manila  street  railways. . . , - .  - . 

Track  reconstruction,  Manila  street  railway • 

Center-entrance  car,  M.an,ila  street  railways 

,End-«nir*iM;e  car,  ,M,aEiIa  itre«t  railwayi. 


pane. 
1 

56 

5® 
57 
57 
G4 
64 

65 

65 
65 

72 

72 

73 

73 
75 
76 

76 


LETTER  OF  SUBMITTAL. 


77 
77* 

96 

m 

97 

97 

116 

116 

132 

133 

133 

138 

—  m 

139 

162 

103 

163 

232 

232 

233 

233 

240 

240 

241 

241 

Department  of  Commerce, 
Bureau  of  Foreign  and  Domestic  Commerce, 

Washington,  June  2,  1919. 

Sir:  There  is  submitted  herewith  a  report  on  the  markets  for 
railway  materials,  equipment,  and  supplies  in  China,  Japan,  Chosen 
(Korea),  Manchuria,  and  the  Philippine  Islands,  prepared  by  Trade 
Commissioner  Frank  Rhea.  The  information  is  in  the  same  general 
form  as  that  in  Special  Agents  Series  No.  156,  ''Railway  Materials, 
Equipment,  and  Supphes  in  Austraha  and  New  Zealand." 

On  account  of  its  present  importance  and  future  possibilities,  China 
is  taken  up  first,  at  length  and  in  detail.  Japan  is  considered  second, 
although  in  the  future  that  country  is  likely  to  be  a  competitor  of  the 
United  States  rather  than  a  customer.  Chosen  is  third  and  Manchuria 
fourth.  Although  the  latter  is  Chinese  territory,  it  has  very  close 
relations  with  Japanese  and  Korean  railways  and  business  enterprises. 
This  is  particularly  true  with  respect  to  the  activities  of  the  South 
Manchuria  Railway  Co.,  w^hich  is  managed  under  the  auspices  of  the 
Japanese  Government.  The  administration  of  that  company  is  a 
branch  of  the  Colonial  Department  of  the  Empire.  The  Phihppine 
Islands  appear  last,  though  the  situation  there,  in  Mr.  Rhea's  opinion, 
is  far  from  the  least  important. 

Particular  attention  is  given  to  the  Chinese  Government  Railways, 
especially  the  possibilities  of  selling  them  rolling  stock,  of  which  these 
lines  have  an  entirely  inadequate  supply  at  the  present  time. 

The  report  is  so  arranged  that  it  should  serve  as  a  ready-reference 
manual  covering  the  railways  of  all  these  countries. 
'    Respectfully, 

B.  S.  Cutler, 

Director. 

To  Hon.  William  C.  Redfield, 

Secretary  of  Commerce. 

15 


■iilii 


FAR  EASTERN  MARKETS  FOR  RAILWAY  MATERIALS,  EQUIPMENT, 

AND  SUPPLIES. 


Part  L— CHINA. 

INTRODUCTION. 

In  preparing  this  report  on  Chinese  markets  for  railway  materials, 
equipment,  and  supplies,  it  will  be  assumed  that  the  reader  is  suffi- 
ciently informed  concerning  general  conditions  to  warrant  a  some- 
what cursory  treatment  of  such  features  and  a  concentration  of 
attention  upon  matters  relating  to  transportation.  At  first  it  was 
not  the  writer's  intention  to  take  up  the  matter  of  the  railway  loan 
agreements  as  affecting  the  Chinese  railway  markets,  but  after  a 
survey  of  all  the  factors  in  the  situation  it  was  decided  (not  without 
reluctance)  that  any  report  would  be  fundamentally  lacking  if  such 
a  discussion  was  not  included.  The  consideration  of  this  subject, 
however,  is  confined  chiefly  to  the  features  that  are  believed  to  be 
interesting  from  the  viewpomt  of  an  engineer,  with  relatively  little 
emphasis  on  the  financial  and  diplomatic  aspects. 

The  history  of  Qiinese  engineering  and  transpoi  tation  is  as  engross- 
mg  as  any  other  part  of  Chma's  wonderful  history.  Without  doubt, 
China  at  one  time  had  the  best  general  transportation  facilities  of  any 
nation  then  existmg,  as  is  still  evidenced  bv  the  remains  of  the  caravan 
roads,  the  canals,  and  the  examples  of  well  designed  and  constructed 
masonry  highway  bridges— many  now  in  excellent  serviceable  con- 
dition, though  some  of  them  are  many  hundred  years  old.  As  the 
wi-iter  ascertained  by  personal  inspection,  the  Great  Wall  well 
deserves  all  that  has  been  said  of  it  as  a  monument  of  engineering 
organization,  and  everlasting  persistence. 

Without  question  there  have  been  gi-eat  changes  in  recent  years 
m  the  attitude  of  the  whole  population,  especially  regarding  modern 
(or  rather  occidental)  utihties.  Instead  of  encountering  opposition 
to  these  occidental  innovations,  one  is  now  rather  impressed  with 
the  search  that  is  being  made,  particularly  by  the  Chinese  gentry, 
for  means  to  overcome  some  of  the  handicaps  growing  out  of  the 
"Battle  for  Concessions,"  the  "spheres  of  influence,"  and  the  loan 
agreements,  and  to  insm^e  an  opportunity  for  China  to  develop  alono- 
natural  economic  lines.  "^ 

The  statement  seems  fully  warranted  not  only  that  the  averat^e 
man  m  the  more  important  walks  of  Chinese  life  will  assist  in  tSe 
development  of  Chma's  many  resources  by  introducing  western 
improvements,  but  also  that  a  great  many  of  the  more  advanced 
thinkers  are  keenly  dissatisfied  with  certain  conditions  that  tend  to 
restrain  the  progress  of  the  nation. 

If  the  nation  is  given  the  propei  opportunity,  and  the  present 
trend  is  not  entu-ely  upset,  one  seems  justified  in  predicting  that 
bhma  will  see  greater  changes  than  probably  any  other  nation  in  the 
world  in  the  next  25  years. 


106229°— 19- 


17 


I.  GENERAL  INfOlMATION- 


GEOGIAPHICAL  LOCATION  AND  AMBA. 

The  southern  limit  of  China  is  at  about  the  twentieth  degree  of 

latitude,  which  is  well  within  the  tropical  zone,  and  the  northern 
limit  of  Manchuria  is  above  the  fiftieth  degree,  being  in  about  the 

same  latitude  as  the  most  southeik  part  of  Hudson  Bay. 

The  China  Year  Book  for  1916  stows  the  area  of  all  Chmese  terri- 
tory as  folbws^: 

'•'  Square  miles. 

Tlie  18  PTO\in«s  of  China  propc^r • • 1|  532, 800 

Tlie  3  PrO'Viiicea  of  Manchuria • ■ 363, 700 

Mongolia . . . . . 1, 367, 053 

Til»€»i - .  - ^"•*'  ^^^ 

Cliinea©  Turkestan ■ ■  •  •      ^^0, 579 


•  •»-- 


•  •••••••••-•••»•    *i  '"^  ">  daft 

It  is  rather  interesting  to  note  that  the  average  area  of  the  ^18 
Provinces  of  China  proper  k  85^000  square  miles,  as  compared  with 
an  average  of  63,000  square  miles  for  the  48  States  of  the  United 
States.  Szechwauj^  the  largest  Province,  has  an  area  of  218,530 
square  miles  and  Chekiang,  the  sm,allest,  an  area  of  36,680,  against 
265,900  and  1,250  for  Texas  and  Rhode  Island,  the  Urges t  and 
"smallest  of  the  American  States.  .,     ,        ,         i 

The  area  of  Manchuria  is  only  33,000  square  miles  less  than  the 
combined  area  of  the  four  northwestern  Statm  of  Washmgton, 
Oregon,  Idaho,  and  Montana  and  only  3,000  square  mdes  less  than 
the  area  of  our  largest  State,  Texas,"  with  Arkansas  and  Louisiana 
added.    Manchmia  has  an  area  25  per  cent  greater  than  either 

France  or  Germany. 

CLIMATE. 

China  has  aU  the  varietiea  of  climate  that  one  findd  in  the  United 
States  from  Florida  to  Montana.  , 

The  .greater  part  of  Chma,  however,  has  a  rainy  and  dry  season 
somewhat  comparable  to  that  of  the  northwest  coast  of  the  United 

States.  The  seasons  in  China—in  fact,  m  all  the  Far  East— foUow 
the  movement  of  the  sun  much  more  closely  than  is  the  cme>  in  the 
eastern  and  central  parts  of  the  United  States.  In  northern  Man- 
churia the  people  say,  with  some  truth,  that  they  have  only  two 
seasons,  summer  and  winter,  with  no  real  spring  or  autumn.  Ihis 
is  accounted  for  by  the  changes  in  the  prevailing  winds,  which  occur 
at  nearly  the  same  tuna  from,  year  to  year. 

POPULATION. 

An  actual  enumerating  census,  along  the  lines  of  those  in  occidental 
countries,  has  never  been  taken  in  China.  The  population  of  the  18 
Provinces  is  variously  estimated  by  the  d.ifferent  authorities,  the 

m 


CHINA.  •  19 

figures  ranging  from  less  than  300,000,000  to  more  than  400,000,000. 
I  ho  Chmese  customs  authorities  in  1910  estimated  the  total  popula- 
tion of  the  18  Provinces  at  421,425,000  and  of  the  3  Provinces  of 
Manchuria  at  17,000,000.  This  population  is  densest  along  the 
seacoast  and  the  navigable  streams.  In  some  places  the  only  way 
to  appreciate  this  density  is  actually  to  see  it;  no  descriptions  or 
illustrations  that  the  writer  had  ever  seen  had  given  him  an  adequate 
conception  of  the  facts.  Farther  in  the  interior  the  population  is 
much  less  dense;  in  fact,  many  places  are  somewhat  sparsely  settled. 
^/^  ^xception  is  the  Provmce  of  Szechwan,  on  the  upper  stretches 
of  the  Yangtze  River,  which  is  quite  densely  settled;  its  area  is  about 
218,530  square  miles,  and  the  Chinese  customs  authorities  esthnate 
Its  population  at  78,700,000. 

LANGUAGE. 

While  the  Chinese  literature  of  all  parts  of  the  country  is  written 
with  the  same  characters,  and  can  be  read  and  miderstood  by  the 
educated  Chinese,  the  pronunciation  varies  to  such  a  degree  that 
conyersaticm  can  not  readily  be  carried  on  by  people  of  different 
sections.    The  ''mandarin'^  is  the  dialect  used  by  persons  in  official 

It  is  the  general  policy  of  the  large  foreign  commercial  concerns  in 
Lhina  to  have  younor  men  entering  their  service  take  up  the  study 
of  Chmese.  The  writer  was  sm  prised  at  the  progress  that  some  of 
these  men  had  made  at  the  end  of  two  or  three  years;  at  the  end  of 
five  years  many  of  them  apparently  speak  Chmese  very  well—at 
least  they  can  carry  on  a  conversation  in  Chinese  without  kny  notice- 
able effort.  It  seems  well  worth  the  effort  of  young  or  middle-aged 
men  entering  the  service  of  commercial  concerns  in  China  to  take 
u]>  the  study  of  Chinese,  which  undoubtedly  will  prove  of  weat 
assistance  to  them  in  a  business  way.  ^ 

WEIGHTS  AND  MEASURES. 

It  has  been  the  purpose  in  preparing  this  report  to  avoid,  so  far  as 
possible,  reference  to  foreign  weights,  measures,  and  currency  and 
such  umts  have  been  employed  only  where  it  was  not  practical  to 
rSw      d   ^^^  ^^  *^™^^  ^^^^  ^  ^^®  preparation  oi  American 

Distances  and  dimensions  have  m  all  cases  been  reduced  to  miles 
feet,  and  inches,  although  much  of  the  data  secured  was  in  metric 
measurements.    In  some  of  the  references  the  Chinese  ''IV  is  men- 
tioned.   This  seems  to  be  a  somewhat  variable  distance,  but  in  gen- 
eral It  may  be  considered  equal  to  about  0.37  of  a  mile. 

In  some  of  the  Chuiese  references,  catties  and  piculs  are  mentioned- 
these  are  equal  to  li  and  133|  pounds  avokdupois,  respectively. 

CURRENCY  AND  FOREIGN  EXCHANGE.' 

There  are  three  principal  kinds  of  currency  m  China^thc  cash, 
the  dollar,  and  the  tael.  The  cash  is  a  small  bronze  coin,  pierced  iii 
the  center  for  strmgmg,  which  is  familiar  in  this  country  as  a  curiosity. 
1  hough  it  is  bemg  superseded  to  a  considerable  extent  by  the  frac- 

ir/i7h*i'l^f''°"  ^^5  been  taken,  for  the  most  part,  from  Spceial  Agents  Series  No  172  "FlPffnVai  n^wi. 
Chin^''  '^^  ^  Vladivostok."  and  Mik-ellkneous  Lies  nS!  7o'  ''The  Conduct  o!  BSL^^Sfh 


m 


BAILWAY  MATERIALS,  EQUIPMENT,  AKB  SUPPLIES, 


tional  dollar  currency,  it  is  still  the  coiiimoii,est  coin,  especiftHy  outside 
of  the  larff©  ports,  for  small  retail  transactions,  in  which  the  Chinese 
alone  are  coiicemed.  It  is  almost  never  used  by  foreigners,  and  does 
not  enter  into  foreign  trade.  It  is  customary  to  reckon  tlie  cash 
as  roughly  equal  to  one- tenth  of  a  Chinese  cent,  but  its  actual  value 
is  constantly  fluctuating.  It  is  independent  of  any  gold  or  silver 
standard. 

The  dollar  currency  is  t.he  oiieial  circulating  medium  of  China. 

le  basic  unit  is  a  silver  dollar,  sometimes  called  the  "Yuan  Shi-kai 


ar/'  adapted  from,  the  Mexican  dollar  and  containing  0.779976 
of  an,  ounce  of  fine  silver..    According  to  the  quarterly  statement  of 

the  Director  of  the  Ignited  States  Mint  with  regard  to  the  vahie  of 
foreign,  coins,  the  Chuiese  doll,ar  is  equal  approximately  to  0.644  of  a 
liaikwan  tael:  therefore  it  is  equivalent  to  0.7174  of  a  Shanghai  tael,, 
at  the  official,  .ratio  between  tlie  two  taels.,  (See ■paragraphs  on  the 
tael.) 

The  new  dola.r  circulates  freely  and  is  becom,ing  mom  and  more 
the  standard  co.i.n.  of  the  count:ry,,  thougli  it  is  still  discounted  in  cer- 
tam  ioctlitiea,  es.pecially  m  the*sout.h.  It  is  indicated  by  the  same 
Bign  (f)  as  the  United  Sta,t.es  dollar,  and  siuns  in  United  States 
ciirreiicv  are  distingi,i..ished  locally  %  the  letter  *''G"  (gold).  The 
officia,!  Hongkonf!:  doMar  is  common  in  South  China,  and  several  other 
local  doMars  are  in  ci.rculation.  The  word,  '*doia,rs"  is  frequently;  ap- 
plied, in  China  t.o  other  cu..,rrency  units  originally  based  on  the  Mexican 
dollar — even  to  the  Indo-C'h.ina  piaster  and  the  Phihpp.ine  peso.  ^  In 
the  district  under  Japanese  control  the  Chinese  dollar  or  its  ©quiva- 
lent  is  sometimes  called  a  "silver  yen"  (SY).  Prices  in  silver  cfoUars 
of  any  Mnd  are  u.sually  quoted*  as  **Mex."  Wherever  the  term 
**S  Mex."  is  used  in  the  present  report,  the  Chinese  silver,  or  **  Yuan," 
dollar  is.  meant. 

The  national  currency  includes  8.ilTer  20  .and  10  cent  pieces  and 
bronze  cents,  'which  fluctuate  independently  of  the  dollar  of  which 
they  .are  nominally  .fractions.  'Tliis  fractional  currency  is  .locally 
knowTi  as  "sm.all  money/'  to  d,i9tingu.i8h  it  from  the  integral  dollar 
currency,  w-liich  is  called  "b.ig  .money."  As  far  as  foreigners  are  c-on- 
cemed,  the  ** small  money"  appears  only  in  minor  ret.a,il  transactions; 
but  it  is  necessary  to  ■understand  th.e  distinction  because  it.  usually 
exchanges  with  **l>ig  money"  at  a  discount  of  10  to  20  per  cent  of 
its  face  value.  .In  the  annual  statement  of  a  company  operating  a 
street  .railway  .in  one  of  the  treaty  ports,  a  deduction  of  20  per  cent 
wiLs  made  from  gross  eaimings  on'  .accoun.t  of  the  depreciation  of 
"small  co.in8." 

The  Chuiese  Government  issues  no  paper  currency,  but  the  Govern- 
ment-con ti'0.11©d  Bank  of  China  and  Bank  of  Communications  issue 
notes,  which  are  not  at  present  fmdj  redeemed  in  specie  and  .circulate 
only  at  heavy  discounts.  The  foreigii-exchange  ba.nks  issue  in  dollar 
currency  notes  that  ckculate  at  par  in  the  locahty  where  issued  and 
at  a  sm,a,l,  d.is.count  (usually  about  2  per  cent)  in.  other  parts  of  Chma. 

The  do.llar  currency  is  beyond  doubt  the  coming  standard  of 
China,  though  the  tael  will  continue  to  rule  for  a  long  time  in  com- 
mercial transactions.  The  dollar  is  now  the  medium  for  all  cash 
payments  in  which  foreigners  are  concerned,  for  most  small  personal 
tank  accounts,  and  to  an  increashig  degree  for  general  retail  business. 
It  is  used  little  in  wholesale  bus.kess  and  Ytrj  rarely  in  foreign  trade. 


CMIKA, 


21 


tZ^Jm  f  #??*  f  T""  ^^^  \^^^g^t  of  silver  of  a  given  fineness. 
The  weight  of  the  haikwan,  or  Maritime  Customs,  tael  is  the  same  as 
the  standard  tael  weight  (IJ  ounces),  and  its  relation,  feed  by 
flX^Sm  AA^Qof^""  ™P^^^^S,^  taels,  is  as  follows:  100  haikwan 
l^d  in  i'lti  1^?""^  ^^  Treasury,  taels,  105.215  Tientsin  taels, 
?na  A  qI     Shanghai  taek     One  hundred  kuping  taels  are  equal  to 

eZm.r^f.Tf.tl  ^^'  1^^  ""^^^  ""^  ^^^  ^^^^^^  ^^  ^^^^^^  «ther 
?rr^Th  1  ?  ^  '^  ^^f  ^^"^  ^"^^  i^  t"^^  ^y  ^^^  customs  authori- 
ties. Ihe  haikwan  and  kupmg  taels  are  the  only  important  ones 
distinguished  by  their  use;,  for  the  other  taels  the  cFiSion  k 
OT^  taef ^^^^^^  ^^^^  important  commercial  center  having  its 

f^  t^  ^^^^I  ^^  ^1  coined  taels,  payments  in  this  medimn  are  supposed 

of  ingots  of  a  peculiar  shape  knowTi  as  ''shoes,"  which  weigh  about 
50  taels  each.  Between  foreigners  and  Chinese  fii-ms,  however  tael 
^ciX^  '^^'f  t.^  "^"^  by  negotiable  paper  or' by  c^wei^fon 
ifcal  ^^a  S%*  ''  inconvenience  is  driving  the  tael  out  of  use 
m  casH  and  retail  transactions,  it  is  maintained  as  the  standard 
currency  of  the  countrj-  by  the  conservatism  of  the  people   the  in- 

The  tael  IS  not  used  in  Hongkong  and  is  less  dominant  in  the  trade 
mirif  China  than  in  that  of  the  center  and  north.    The  Govern! 

r^i^Shfn  rr^:"'  '•^^"''^  *^^  ^'^°-  ^^  ^^^^ 

™Sf  f^^;w.P"^Th''"i'^''^,^^""'''/'""  S''^'^  »»"*  ««J1«  h«  imported 
^.mW  nf  T    i    ^*»?.f  *d  values  to-day  are  equivalent  to  a  certain 
nuniber  of  taels,  while  to-morrow  they  may  be  quite  different 
r^aulefci^t*^'  fluctuation  m  the  number  of  tae\  that  wiU  be 

w  wnen  tlie  puce  of  silver  is  lugh  and  miports  are  slack.  When 
S  w'^oWa^  ^"^"'  can  get  more  gold  dollar  for  his  silver  money" 
ana  when  there  is  no  rush  of  imports  there  is  no  comnetifion  in 

th^u^^"t^  ''^^■""  ^°^  r^'^  *■>?  "°  '''''^'^^  to  raise  the  pnce  of  goU 
fin,rfM/h"^  r  %  '°^'i''^V    On  the  other  hand,  the  exSr 
fands  it  the  best  tune  to  sell  when  the  opposite  conditions  prevail 
Trade  is  tiierefore  sympathetic  to  some  Stent  with  theTaSatlon, 

noui-  to  horn-  by  the  banks.    A  compl  eating  feature  is  the  fact  th«> 

SwlVr?'"'!  •'  ^''''''^^'  indepenJlently  o1  intematronal  exchange 
and  local  fluctuations  may  make  it  difficult  to  <?p11  oT>nrI=  «  *  »  X„.  7  ■  t  ' 
time  in  a  given  district.  "uncuit  to  bell  goods  at  a  particular 

Dno,^„«J™f*  r^'^  ¥i  ^<'\^^^J^  "cheap"  in  China,  owing  to  the 
S  the  wnr&"frT  °S  '^7'  -^y  ^^''  ^''"^S  nations  aid  to  tie  drop 

nnces  m  Mexico,  bo  far  as  exchange  only  is  concemetl  the  l««f  f«w 
years  have  been  favorable  to  the  p,2-chas Jof  goodsTbroad  but  pt^ 
£r±r  ^,T  TIT''"*  -^^^y  "t'^^'  ^^«toi^,  such  L  extrS; 
of  the  S  fvfc  J'''TK"n'  "2*^  ^"^-^^J-tainty  as  to  the  continuant 
conditions  l?;\>^-  Tbe  trade  of  Chma,  under  the  complex  war 
conditions,  has  been  generally  prosperous;  but  in  the  long  nln  it  has 


.lAILWAY  MATiaiIALS>  B;QUIPM:EISrT,  ANB  SUPPLIES. 


"been  found  tliat  a  low  exc!lMi|e  rate  is  more  favorable  to  an  actiTO 
foreign  trade  becanae  the  Chinese  obtain  the  money  to  pnrcbaso 
foreign  goods  from,  the  sale  of  Chinese  products  for  export.  NormaO v, 
therefore,  a  high  excliange  rate  limits'  exports  and  thereby  indirectly 
limits  impofts. 

When  foreign  goods  are  pnrcbased,  the  Chinese  buyer  or  the  import- 
ing bouse  enters  into  an  exchange  contract  with  a  "bank  in  the  port 
of  iiiiporfcation,  which  acts  m  agent  for  that  bank  in  tlie  country  of 
origin  to  which  the  documents  covering  the  purchase  are  hypothe- 
cated. Th«e  cOntracte  are  usually  arranged  by  exchange  brokers. 
If  the  contract  calls  for  the  purcliase  of  goods  at  a  price  in  ,^old,  tlie 
ibuyer  usually  paj^s  for  the  goods  on,  a  c.  i.  f.  b.asis  and,  in  addi- 
tion,  pays  tfie  interest  on  the  draft  and  the  profit  of  the  import- 
ing house.  Contracts  made  at  a  silver  price  often  stipulate  that  the 
importing  house  is  to  look  after  the  bank  and  other  charges.  In 
such  cises^  the  price  that  is  paid  by  the  Chinese  buyer  includes  the 
importer's  profit  and  the  inte-rest  on  the  draft,  and  the  goods  are 
said  to  be  sold  on  a  c.  i.  f.  c.  i.  basis;  i,  e.,  cost,  insurance,  freight., 
pins  commission  (more  properly,  profit)  and  interest.  Both  methods 
are  common;  the  practice '  varies  with  the  importance  of  the  trans- 
action and  the  nature  of  the  goods.  ^  •' 

Tlie  fluctuations  in  exchange  make  it  difficult  to  state  accurately 
in  United  States  currency  domestic  prices,  in  China,  local  coste  of 
production,  etc. 

The  f ©Mowing  table  shows  the  average  exchange  rates. of  Shanghai 
taels  and  silver  dollars  for  1912  and  1913,  and  for  each  month  from 
January,  1914,  to  March,  1918.  Actual  quotations  for  the  silver 
dollar  for  this  period  are  not  available;  the  rates  given  were  obtained 
by  multiplying  the  Shanghai  tael  by  0.7174: 


Tears  and  ni'Cinlhs. 

Shanehal 
iaels. 

silver 

1812 

mm 

mAn 

Mil... , 

.m 

ATS 

Mit: 

Jmniary 

.§2: 

.441 

'Fabriiar  J. 

M 

.448 

Mmth ., , 

M 

.4.!i3 

is?:::::::::::::::::.::: 

M 

.4*il 

.m 

.450 

Jimc. 

.11 

.441 

July., 

.« 

.m 

AllfUSt 

,m 

«:    ■  jSflf 

fiBptcmtar ,  - . 

.m 

,4m 

October 

.53 

,9m 

NoveinlKsr. 

.at 

,9m 

I)<M»in.bcT , 

.an 

lilS: 

Januan* 

.54 

.a» 

Februarv 

.,M: 

.388 

Mawli 

.» 

.»» 

April 

.55 

.399 

Mav.,. 

.55 

.»8 

June 

.W 

.3iM. 

JlllV 

.  53 

.Mi 

Au.ifiilSt 

.52 

.3» 

Septemtier. . , 

.53 

.M 

OctolwT, 

.54 

.IM. 

N'Ovianbcr 

.H 

.413 

Deoenber, 

.ii 

.tt 

YM.rj  and  niicnihs. 


MM'.- 

Jamiary... 
February ... 

March 

.%j>ri.i 

May 

June 

jfuiijir  • « .« •  HI  Ht  M 

OctOlMif.  .. 
N«ivi*ml.,»r. 

.DOiMin'toCT. 

IMI: 

January . . . 
Ptbnjary.. 

M'arcli 

April... ... 

M:ay. 

June 

iiUiJIjli     M     «    «.    *    •■    «.   W 

.Aogust.... 
fcptemlier. 
Oototwr. .. 
Novtm!»r. 
neooinljof. 
1918.: 

January... 
Fabruary.. 
Marcb 


Sbanghai 
taeis. 


IM 
1.0tli 

1.021 


Silver 
dallmrs. 


to.  443 

•   §1  f 

.4m 
.m 

.fi3l 
.501 
,475 

.508 

.5.23 

.  iPOsl 

.'Wi 

.500' 
.614 

.m 

.508 

.WO 

.031 
.657 
.  722 

.827 

tuna 

.724 

.733 

■.7:m 

.731 


CHINA. 


23 


No  attemnt  will  be  made  in  the  present  report  to  convert  silver 
dollars  to  United  States  currency  or  any  other  equivalent;  this  is 
considered  impracticable  on  account  of  the  constantly  changing 
price  of  silver,  which  has  varied  greatly  in  the  last  few  years.  A  person 
doinff  business  in  China  soon  learns  (of  necessity)  to  think  in  terms 
of  "Mex."  currency.  Unless  otherwise  indimted,  the  i  sign  in  the  Chi- 
nese sections  of  this  report  means  Chinese  silver  currency. 

With  special  reference  to  the  railway  situation,  it  may  be  well  to 
revert  for  a  moment  to  the  subject  of  depreciated  currencies.  The 
earnings  of  the  steam  railways  are  not  affected  by  the  "small" 
silver  coinage  or  the  "copper  cent,"  since  their  charges  are  based  on 
the  "large"  money.  To  support  the  paper  issues  of  the  Bank  of 
Communications  and  the  Bank  of  China,  both  of  which  have  been  at 
a  heavy  discount,  these  issues  liave  been  accepted  for  some  time  by 
some  of  the  railways  at  their  face  value  in  payment  for  fares  and 
freight  charges.  But  in  paying  interest  charges  and  expenses  the  rail- 
ways have  had  to  bear  this  discount  loss,  which  has  had  quite  an 
appreciable  effect  on  the  earnings  of  the  lines  north  of  the  Yangtze 
River.  However,  as  this  was  an  expedient  to  assist  the  Government 
m  supporting  these  issues,  it  is  felt  that  it  need  not  be  considered  as  a 
permanent  feature  of  the  railway  earnings.  The  tramways  promptly 
reduce  their  "small  money"  and  "copper  cents"  to  a  "large"  money 
oasis. 

AGRICULTURE  AND  PASTORAL  PURSUITS. 

China  is  prinaarily  an  agricultural  country,  and  the  wide  range  of 
climate,  the  rich  sod,  and  the  simple  wants  of  the  people  make  it  one 
of  the  few  countries  m  the  world  that  can,  if  necessary,  be  self-sup- 
porting. The  products  are  very  varied.  Rice  is  the  principal  crop 
and  staple  food  in  South  and  Central  China,  but  in  the  colder  parts 
of  North  China  millets  very  largely  take  the  place  of  rice.  One  of 
toese,  known  as  kaohaug,  provides  a  food  substitute  for  rice  and  is 
the  principal  fodder  crop,  while  the  stalks  and  roots  are  one  of  the 
prmcipal  sources  of  domestic  fuel.  Wheat  is  a  secendary  cmp  but  is 
gi-owing  in  importnnce. 

Where  transportation  is  avaUable  special  crops  are  being  raised 
mth  much  success  m  many  instances— for  example,  sova  beans  iii 
Manchuria,  potatoes  along  parts  of  the  Peking-Suiyuan  RaUway 
peanuts  alMg  the  Peking-Hankow  Railway,  and  tobacco  alone  the 
bhantung  Radway.  ^ 

^  While  the  cultivation  in  many  instances  is  what  might  be  called 
intensive,  the  methods  are  very  simple  and  the  implements  almost 
primitive,  usually  necessitating  a  great  amount  of  human  labor. 
Une  feature  that  is  particularly  noticeable  is  the  wide  areas  usuallv 
under  cultivation  with  uo  fences  whatever.  The  Chinese  apparentlv 
do  not  believe  in  wasting  good  material  for  such  a  purpose  as  separat- 
ing one  another  s  crops  but,  rather  curiously,  thev  close  in  their  low- 
bmit  dweUings  with  high  mud  or  brick  walls,  doubtless  as  a  means  of 
protection. 

Pastoral  pursuits  in  Cliina  are  entirely  secondary  to  agriculture, 
aitnou^h  m  the  aggregate  the  products  are  very  considerable,  par- 
ocularly  froni  the  interior  regions  in  the  form  of  hides,  wool,  and  hair. 
lUe  marketing  of  some  of  these  articles  involves  a  large  amount  of 
tra.nsportation  and  will  mean  a  considerable  source  of  railwav  f reic^ht 
as  18  illustrated  by  the  traffic  over  the  Peking-Suiyuan  line  at  presSntl 


9  A 


MltWAY  MATERIALS,  EQIJIPM'ENT,  AND  SUPPLIES. 
IIINBIAL  PRODUCJTION. 

COAIk 


CHIFA. 


25 


CliiM,,  no  doubt,  has  very  lare;©,  varied,  and  valuable  coal  resources, 
1)ii,t  it  is  diffictilt  to  obtain  definite  data  concerning  them.  The 
Japanese  have  tlioronghilj  proved  the  fields  they  control  in  South 
Maneliuria.,  at  Fiisliun/Yentai,  and  Penchihu.  'fhe  Fushun  field  on 
the  Fushun  Branch  of  the  South  Manchuria  Railway;  236  miles  north 
of  Dairen,  contains  about  800,000,000  long  tons  and  carries  a  high 
percentage  of  nitrogen,  and  there  is  a  very  complete  Mond  gas  nlant, 
producing^  a  consideral)le  amount  of  ammonia.  The  Yentai  field  near 
the  mainline  of  the  South  Manchuria  Railway,  about  225  miles  north 
of  Dairen,  contains  a  much  smaller  (juantity  of  steaming  coal.   These 


two  fields  are  controlled  by  tlio  Soiith'4Ianchuria  Railway  and  are 
both  equipped  with  modern  apparatus;  'with  a  total  of  approximately 
20,000  employees,  they  are  now  producing  about  2,225,000  toiB^  a 
,year. 

The  Penchihu  field,  47  miles  from  Mukden  on  the  Antung  Branch 
of  the  South  Manchuria  Railway,  while  hmited  as  to  quantity,  con- 
tains some  very  good  coking  coal.  This  is  of  much  importance  to 
the  Japanese  interests  in  connection  with  the  two  150-ton  iron  fur- 
naces at  Penchihu,  the  two  new  250-ton  furnaces  of  the  South  Man- 
churia Railway  at  Anshan,  about  190  :miles  north  of  Dairen,  and  the 
new  iron  plant  at  Pingyang  on  the  Korean  Railways  in  Korea.  The 
coaljiron-ore,  and  lim.estone  deposits  and  the  iron  furnaces  at  Penchihu 
are  controlled  by  the  Okura'Co.,  of  Japan,  and'  the  present  coal 
production  is  about  300,000  long  tons  a  year. 

The  only  other  instance  in  which  the  writer  was  able  to  see  data 
'Iiroving  the  quantity  and  quality  of  the  coal  was  that  of  the  Kaiping 
tield,  controlled  by* the  Kailan  'Mining  Administration,  which  is  lo- 
cated on  the  mainline  of  the  Peking-Mukden  Railway  about  80  miles 
northeast  of  Tientsin.  Here  there  is  a  proved  amount  of  about 
1,000,000,000  long  tons  of  lirst-claas  coal,  a  considerable  portion  of 
mMch  will  coke.  With  about  20,000  men  the  present  production  is 
approximately  3,250,000  tons  a  year,  with  a  production  of  about 
100,000  tons  of  coke  now  produced  by  the^  Chinese  process.  It  was 
■stated  by  a  well-informed  authority  that  the  Kailan  Mi.ning  Admin- 
istration contemplates  improvements,  amounting  to  approximately 
$10,000,000  United  States'  currency  in  the  way  of  washmg  and  by- 
iproduct  processes,  these  improvements  to  be  undertaken  as  soon  as 
possible  after  the  end  of  the  war.  The  greater  part  of  the  coal  now 
exported  from  China  proper  comes  from  this  field,  and  the  average 
rail  haul  to  Chinwangtao,  the  principal  coal-exporting  port,  is  about 
75  miles.  This  is  the  only  port  of  Morth  China  on  the  Gulf  of  Chihli 
that  is  free  from  ice  diirmg  the  long  winters  of  this  section,  except 
Dairen,  which  is  under  Japanese  control. 

The  next  largest  producing  mines  are  the  Pinghsiang  collieries  of 
the  Han-Yeh-Ping  Iron  &  Coal  Co.,  in  Kiangsi,  about  260  miles  south- 
west of  Hankow.  The  annual  production  is  about  1,000,000  tons, 
and  all  the  fuel  and  coke  for  the  Han-Yeh-Ping  Iron  Works  at 
Hanyang^,  ne»  Hankow,  come  from  these  mines. 

There 'is  no  doubt  of  the  fact  that  extensive  and^  valuable  fuel  do- 
posits  occur  in  many  parts  of  China,  particularly  in  C'hihli,  Shansi, 
Honan,  and  Kiangsi,  but  so  far  .as  could  be  learned  none  of  the  fields 


other  than  those  mentioned  have  been  conclusively  proved  up  m  to 
quantity  and  quality.  The  best  statement  of  the  recent  production 
situation  was  published  in  the  Far  Eastern  Review  for  October,  1917. 
As  this  publication  prepares  its  data  with  much  care,  the  followint' 
information  is  given  substantially  as  printed.  The  total  present  coal 
production  of  China  from  all  classes  of  mines  is  about  18,000,000  tons, 
of  which  about  8,000,000  tons  come  from  the  larger  mines  where  more 
or  less  modern  methods  prevail  and  which  are,  in  the  main,  under 
foreign  control  or  administration.  According  to  figures  collected  by 
the  Geological  Survey  of  China  for  the  year  1915,  the  most  recent 
year  for  which  figures  are  available,  the  output  of  the  principal  mines 
was  as  follows: 


Name  of  mining  enterprise. 


Location. 


Kalian  Mining  Administration. 

Pinghsiang  Colliery 

Peking  Syndicate 

Linchong Coal  Mining  Administration. . 
Chunghsing  Coal  MiningAdministration 

TsingciUng  Mining  Administration 

Paochmg  Co 

Linhokou  Coal  Mining  Co 

Tunphlng  Co 

SnMotal 

Fushun  Colliery , 

Penchihu 


Total 


Tangshan-KTaip- 

Pinghsiang 

Chaotso 

I^incheng 

Yishien 

Tsingching 

Yangchuan 

Linhokou 

Mentowkow... . 


Province, 


Nationality, 


Produc- 
tion in 
long  tons. 


Fushun 

Yontai. 
Penchihu.. 


and 


Chihli 

Kiangsi 

Ilonan 

Chihli 

Shantung,.. 
Chihli....... 

Shansi 

Ilonan 

Chihli, 


Manchuria. 

do..... 


Shio-Britlsh 

Chinese .. 

British 

Sino-Belgian.. 

Chinp.se 

Sino-German.. 

Chinese 

do 

8ino-British.... 


Japanese 

do 


2,9n,TO2 

927,463 
480, 875 
259,703 
244, 825 
179, 154 
131,396 
91,S22 
80,000 


5,367,030 

2,034,856 

275, 777 


7,677,663. 


•^^  j^^!?i*^i?^  ^^  ^^^  above,  the  Japanese  military  administration 
mined  259  611  tons  in  1915  and  443.368  tons  in  1916  from  the  mines 
3if  S^Ji^^V'^g  R^jW  and  it  was  expected  by  the  Japanese 
autnorities  at  Ismgtau  that  this  amount  would  be  increased  in  1917 
and  again  m  1918.     In  the  above-mentioned  article  the  rather  sur- 

Vommi\''t^^^^^^^  ^^^^  even  now  China  is  importing  from 

1,000,000  to  1,600,000  tons  and  that  in  normal  times  there  would 

wl?  ^T  ^V'^P*'^^  """"^'^  exports.  Even  with  the  present  rail^ 
ways,  If  adequate  equipment  and  arrangements  were  provided,  there 
IS  every  re^on  to  think  that  Cliina  should  become  an  exporter  of 
coal  instead  of  an  importer.  It  would  appear  that  many  of  the 
developments  have  not  had  the  possible  measure  of  success  because 
^rovm^was  insufficient  to  determine  the  best  scheme  of  develop- 

rrt.n  h.!£?^fP.^'^'KV^^^^^^  ^^  the  matter  of  drainage,  which 
Has  been  the  cause  of  trouble  m  many  of  the  operations, 

IKON. 

diLl^TT?^^^  ?^^^'^  ^^^}  ?^>?  ^^"^  ^^  important  iron-ore 
deposits  but  the  obtaimng  of  definite  information  regarding  the 
proving  data  was  found  to  be  even  more  difficult  than  in  the  case  of 
the  coal  resources.  ^  «.«i^e  ui 

wl^L^i""^?^?  '^^^^  ?^  the  Far  Eastern  Keview  also  referred  to  the 

nfor  i rn^.  ^    A  Pf?^"*^^^ ^  ^f  Chma,  statuig  that  at  present  the  total 

Pig-U'on  production  of  Chma,  aside  from  Japanese  production  in 

lanchuria,  is  about  300,000  tons.    One-half  o!  tliis  is  the  output  of 


Sl 


s 


26  MILWAY  MATERIAL,  EQUIPMENT,  A^D  SUPPLIES. 

lie  Haii-Yeli-Piog  Co.  at  Hankow;  the  remamder,  produced  by 
entered  native  ■pliints,  is  nearly  all  consumed  locally. 
The  Han- 1  ell-Ping  works  consist  of  two  100-ton  and  two  250-ton 

™ maces,  but  at  present  one  of  the  250-ton  furnaces  is  not  beiiii? 

operated,  on  account  of  lack  of  power.  In  addition,  there  are  in 
couree  of  erection  two  400-ton  furnaces  near  Hwangchow,  about  70 
miles  below  Hankow,  on  the  Yangtze  Kiver.  Theselast  furnaces  are 
on  the  river  at  the  point  where  the  ore  is  brought  from  the  Tayefi 
mines  by  means  of  a  2-foot-gauge  railway.  At  present  about  250 
tons  a  day  are  converted  into  steel  and  iron  i>roducts,  and  all  the 
rest  of  the  pig  iron  goes  to  the  Japanese.  This  plant  has  the  only 
rail  mill  m  China,  the  maximum  capacity  of  which  is  120  tons  a  day. 
It  IS  understood  that  there  is  a  Japanese  loan  to  the  Han-Yeh-PiiiE 
Co.  amounting  to  $12,000,000  (gold),  the  principal  and  interest  of 
Winch  IS  to  be  paid  in  40  years,  in  iron  ore  and  pig  iron.  This  loan 
arrangement  for  the  pig  iron  is  at  the  price  of  $21  (gold)  per  ton  of 
.2,241)  pounds  for  the  40-year  period.  It  is  estimated  that  the  present 
production  cost  is  S18  (gold)  per  ton,  'Tlie  loan  agreement  also 
provide  that  2  tons  of  ore  go  to  Japan  for  every  one  that  is  smelted 
by  thi3  Han-leh-Pmg  Co.,  and  the  minimum  amount  going  to  Japan 
IS  es'timated  to  be  1,000,000  tons  a  year. 

The  two  150-ton  Pencliihu  furnaces  of  the  Okura  Co.  (Japanese) 
are  now  producing  about  70,000  tons  a  year,  and  the  new  Anshan 
plant  of  the  South  Manchuria  Railway  is  expected  to  have  the  first 
250-ton  furnace  completed  and  in  blast  before  the  end  of  1918  and 
the  second  250-ton  furnace  before  the  end  of  1919.  The  production 
from  both  these  plants,  as  well  as  that  from,  the  new  Pingvang  plant, 
m  Korea,  which  may  use  both  fuel  and  ore  from  Penchihu,  is  con- 
trolled for  Japanese  consumption.  As  soon  as  the  work  can  be 
carried  out  it  is  planned  to  install  a  complete  steel  plant  at  Anshan 
particularly  for  the  production  of  plates  for  shipbuilding,  of  which 
Japan  is  m  such  urgent  need  and  anxious  to  have  its  own  supply. 
In  any  event,  all  the  production  tliat  can  reasonably  be  expected  in 
the  next  few  years  will  fall  far  short  of  taking  care  of  the  combined 
needs  of  China  and  Japan,  even  when  one  includes  all  the  possibl© 
production  in  Japan  proper. 

onn  MRAiA 

China  is  said  to  produce  in  commercial  quantities  26  different 

minerals,  of  which  antimony  ranks  firet  in  value.  As  with  the  coal 
and  iron  resourc«,  there  is  great,  uiid  urgent  need  for  scientific  inves- 
tigation of  these  mineral  deposite,  so  that  they  can  be  properly  and 
B.uccessfullj  developed.  The  transportation  of  mmerals  other  than 
coal  and  iron  is  at  present  of  no  considerable  volume  and  is  not 
hkely  to^  iniuence  materially  the  building  of  new  lines  of  railway 
rather,  the  building  of  new  lines  will  influence  the  development  ol 
certain  of  thffie  mineral  resources,  which,  in  some  c^a^es  is  ,iiow  much 
handicapped  on  accomit  of  slow  or  expensive  transportation. 

G:BNE11A,L  MANWACTIJIING. 

NotwithfltandiiME  'wiiat  appear  to  'be  very  slow,  primitive,  and 
expensive  methods  of  transportation,  there  is  a  great  amount  of 

.native  manufactured  articles  that  ar©  somehow  gotten  to  porta  for 


CHIlfA.  27 

export.  A  good  illustration  of  tlie  peasant  products  is  straw  braid 
from  North  China,  particularly  Sliantung,  which  is  exported  in 
considerable  quantities  from  Chefoo,  to  which  port  it  is  transported 
by  Chinese  methods.  A  good  example  of  a  community  product  is 
chinaware  at  Kiukiang,  on  the  Yangtze  River,  where  quantities  are 
manufactured  by  native  methods  much  in  excess  of  the  local  needs 
&UCJ1  examples  of  native  manufacturing  can  be  noted  in  many  parts 

The  manufacturing  in  China  of  distinctively  foreign  articles  is  con- 
stantly  becoming  more  important  from  year  to  year,  and,  on  account 
of  the  vast  supply  of  cheap  labor  and  the  adaptabihty  of  the  Chinese 
there  IS  every  reason  to  believe  that  China,  in  the  course  of  time' 
will  become  a  most  miportant  source  for  many  lines  of  products 
requu-mg  a  laree  amount  of  labor.    The  number  of  modern  cotton 

^lnf,v  P^^'^^^ly  ?^^  noticeable,  but  other  lines  that  warrant 
attention  are  cement,  sugar,  flour,  etc. 

KAftWAY  MANUFACTURING. 

The  CJhinese  railways  have  in  most  instances  reasonablv  well- 

3!frf  ll^'T'^^^'Pf"'  ^"-  H'^^  ,r^  primarily  for  the  purpose  of 
making  all  da^sses  of  repairs  to  rolling  stock  in  order  to  insure  a  very 
long  hfe-this  being  the  general  policy  of  all  railwavs  in  the  Far 
fwi?  '""  Australia.  The  exceptions  to  the  general  rule  that  work- 
shops are  only  for  repairs  are  the  Tangshan  workshops  of  the  Peking- 

s^nSran^llTflv''^''^  "'^  ^  2."'  for  erecting  locomotives!  ^af- 
sengci  and  freight  cars,  and  the  Shanhaikwan  bridge  works  of  the 

^n^^^lf  l'^^'T'  't''^  '^'''  ^""^^xr^^  ^^^  ^^^  fabrication  of  new  br  dS 
and  aU  kinds  of  structures.    Both  of  these  works  followed  Brit^h 

ItockZd TlrLT'*"^*^?^^^  ^^  ^^'^  I^"^P^^^  *^  ^""^^  ^U  rolling 
stock  and  fabricate  aU  bridges  and  structures  for  new  as  well  as 

Srfn^^^^^^^^^  Government  railways.  This  conditiorh^not  pic' 
wtn  If  ;n  fi.Pf  *;  ^""^  T^  seems  warranted  in  concluding  that  it 
will  not  m  the  future.     In  the  witer's  opinion,  if  the  present  ten- 

although  this  may  seem  very  inconsistent  with  what  is  said  in  this 

(Shrka^oT^n 'CthXnSi^'^  "''''''^  --^'^^^  ^^  ^«^- 
h,}hl^l»T  ''^""led  that  the  Han-Yeh-Ping  Iron  Works  would 

.»;i  ^1j  ^-  r»"^»ys  in  China,  but  as  this  company's  maximum 
rail  production  is  only  about  30,000  tons  a  year  and  tWewTem 

SXlytm  not^'boln  "^  S^^^^^  ^«^  ^^  ^^  ^^^d  Ld 

of  "merican'"maiXHf  "*  """r^^.f^'ing  P'ant  from  the  standpoint 
stmcS  maf^ri«  L  i=  T'\,?^,  T''^?.^  Cqu  pment  and  fabricated 
RaHw^  r^  It.  n^-*^^  Shakako  shops  of  the  South  Manchuria 
ttaiiway  to.    near  Dairen.    This  is  a  well  arranged  and  eaninnpH 

Sfrin<fT"  n'*""r^  plant  rather  than  a  railwa|worfaho?  oS 
^r^«l  "  ?i  '"'i"^  ^^"^^  ^I'O"*  two-thirds  of  the  present  products 
are  other  than  for  the  use  of  the  South  Manchuria  Kailways    T  an 

£  for  °th  "^  *^  products  it  may  be  mentioned  that  al?the  ma^ 
nab  for  the  extensiye  buildmgs  erected  by  the  Japanese  in  &.uUi 


2:8 


1A1LW'A¥  MATERIALS.,  BQOTPMEHT,  AW3  SUPPLIES. 


a'nclio,ria  during  the  last  three  years  have  been  fabricated  at  these 
works,  the  materials  for  the  new  150-ton  blast  furnace  at  Peiichihu 
have  been  handled  there,  and  the  materials  for  the  two  250-ton  blast 
ftimaces  and  steel  plant  at  Anshan  will  be  furnished  from  these  works. 

Meter-gauge  locomotives  have  been  designed  and  buOt  for  the  Yun- 
,nan  line  of  the  Indo-China  Railways.    The  4  locomotives,  10  passen- 


the  past  threej'ears  all  the  new  rolling  stock  and  also  to  a  great  extent 
that  for  the  Korean  railways,  have  been  erected  in  these  woYks,  and 
there  is  no  doubt  that  this  will  continue  to  be  the  case  in  the  future. 
In  the  past  the  greater  part  of  the  equipment  for  thesa  two  lines  was 
bourfit  in  America  frequently  through  Japanese  comi)anies,  such  as 
the  Mitsui  Bussan  Kaisha.  't'hese  works,  bo  doubt,  will  also  furnish 
all  rolling  stock  and  stnictural  m,aterials  required  by  the  Kirin- 
Changchun  line  connecting  with  the  South  Manchuria  Railway  at 
Changchun;  this  line,  although  a  Chinese  Government  line,  is  now 
under  Japanese  con,trol  as  a  result  of  recent  loan  agreements.  ^  These 
sumo  remarks  apply  to  requirements  for^  any  extensions  of  this  hue, 
which  may  be  very  considerable,  .as  e xplainetl  later. 

The  total  numfcer  of  employees  at  these  works  was  approximately 
4,150  in  July,  1917;  of  these  72  per  cent  were  Chinese,  none  of  whom 
were  employed  in  administrative,  technical,  or  clerical  positions,  or 
as  engineers,  cranemen,  or  similar  employees,  but  entirely  as  artisans 
and  laborers.  These  Chinese  workmen  make  unusually  good  mold- 
ers  in  iron  foundry  work,  and  they  also  are  unusually  good  brass 
workers.  It  is  said  that  on  an  average  250,000  Shantung  laborers 
cross  the  Gulf  of  Chihii  ammally  from  tne  ports  of  Shantung  to  South 
Manchuria  and  scatter  over  the  country,  following  agricultural  pur- 
suits, and  that  the  Japanese  now  recruit  these  men  from  this  source 
lor  tlie  manning  of  their  various  enterprises  in  Manchuria,  such  as 
these  workshops,  the  labor  on  the  docks  at  Dairen,  the  Fushun, 
Yentai,  and  Penchihu  coal  mines,  and  the  new  steel  plant  at  Anshan. 
The  Shantung  man  is  probably  the  most  robust  and  upstanding  of 
any  of  the  Chmese  properj  he  is,  for  example,  one  of  the  best  stone- 
masons in  the  world.  Tno  utilization  of  the  cheap  and  plentiful 
Chinese  labor  by  the  Japanese  in  Manchuria  is  a  very  interesting  sub-. 
ject  on  which  much  might  be  said,  but  it  is  thought  that  the  above  is 
sufficient  to  point  out  the  possibilities  m  this  general  connection. 
In  support  of  the  statement  as  to  the  cheapness  of  this  Chinese  labor, 
one  mav  mention  the  fact  that  on  accoimt  of  the  recent  high  price  of 
silver  the  daily  wage  of  the  Chinese  laborer  at  the  Fushun  mines  was 
raised  from  25  Japanese  sen  (12.5  cents  gold)  to  30  sen  (15  cents  gold). 


11.  CHINESE  COMMERCE. 

.GENERAL  CONDITIONS. 

A  traveler  in  China  studying  the  transportation  problem  soon  per- 
ceives  that  Chinese  commerce  is  of  very  considerable  volume  and  of 
very  great  variety.  He  wondera  how  it  is  aU  accomplished  with  the 
present  transportation  methods  and  he  will  probably  conclude  if  he 
stays  long  enough,  that  the  problem  is  really  beyond  the  full  compre- 
nension  of  the  occidental  mind. 

With  improved  transiportation  facihties,  Chinese  commerce  would 
greatly  increase,  as  is  shown  bv  the  traffic  over  some  of  the  present 
railways  which,  with  mcreased  and  improved  facilities,  would  show 
an  even  larger  volume  of  business. 

.  I^lj^re  has  always  been  a  large  trade  between  the  various  Provinces 
01  Lliina  m  the  native  manufactured  products,  and  there  is  now  a 
growing  commerce  m  manufactured  products  of  foreign  character. 

IMPORTS  AND  EXPORTS. 

fYlth!  fr^rrQ^f '  ""^ ^^4  ^^^>^^^^^^h  or  10.96  per  cent,  cUe 
from  the  United  States.    For  the  same  year  the  total  exports  were 

n„]^ff  ^K*^-^  aggregate  this  looks  large,  when  it  is  considered  on  a 
SS^n?  i  t^^ I  t°vf  ^^.''^■n  V  "'^'^  ^>«  ^^^ «•"«"  and  there  is  every 
J^t  tK^i^  .  i''*  '*'^?  ^^  .""""^  mcreased  in  the  future.  In  the 
past  the  imports  have  included  a  moderate  amount  of  materials  and 
equipment  for  transportation  purposes,  and  while  it  is  difficult  to  pick 
out  the  actual  amount  of  business,  there  really  has  been  more  tW 

Wn  _^1^/^  i*?  ''^^°  expected  in  view  of  the  restrictions  of  the 
loan  agreements  that  are  mentioned  later. 

are  St1fnKli!?fJ^  K  ^""^  ^'<^^P?^^^^  materials  and  equipment 
^„w  f  fi,?  u^  ^  *'"  very  considerable  in  the  future,  and  a  large 
amount  of  this  business  should  come  to  American  manufacturers  if 

Ste'A^  *  •"  f  "^^'^  ^  ^''"'''^  i"^  accordance  with  the  bLt  in 
t^  hi^^ilP^  .T^  transportation  needs.    China's  transportation  can 

tnan  witn  that  which  follows  the  hnes  of  continental  nractiro  ««  U 
weU  Illustrated  on  the  South  Manchuria  and  Korean Wwaj^' 

LIKIN. 

oaiEri^kfn'"l?l?fI^  •"''  ^^^  iiterproyince  and  native  commerce  a  tax 
CWn«'«  intpr^^f  !f  "nq^eftionably  retarding  the  development  of 
L^na  s  mtemal  trade  as  well  as  putting  an  unwarranted  r^triction 
on  the  natural  movement  of  traffic,  partfcularly  over  the  present  rail 

Sts  CZ^d,*'"- '  **^■''  'r'^^  ^'^^'  *^«  forei^Ser  who 
adClorS  Tttk^T''^^  is  aUowed  to  pay  this  taxT,y  a  nominal 
from  th^^„.  y  f    ^?^lf  his  goods  to  the  various  interior  points 

canof  nnX^r- *i  ^Y^  *^  ?.^*'^^  V^^^*"  ^"^  tl^«  substantial  Lndi- 
v^ience  rrn  "»l'''id  mipositions  of  this  likin,  causing  much  mcon- 
venience  as  well  as  additional  mduwt  expense  and  lols.    That  the 


lATLWAY  MATERIALS,   EQU1PMET7T,   AND  SI"PPLrES. 


Oil  Chin 


\v>v 


g-i:iinij£ow' ii,anwBy,  ,.„  .,  ,„ .,,  ^^  ^  .„,,„,.,*..,  v.,.  ....  ...,tv;*,^,.«. 

railwajTi  piiblislicci  in  the  Chinese  Social  and  Political 

,!     1.  i*,,'r  1     •   _     A  I    .     ■i'"^  ,1  ^ -^  ^  __  • 


Science  RctiO'W  and  repiiblisliccl  in  the  l)cce^n,ber,  1917,  iiiimlier  of 
the  Far  Eas^tem  KeTiew.  The  following  is  what  Dr.  Wans  buys  on 
this  subject: 

:Siiiee  likin,  only  Uxm  tl»  Irwlier.  oiw  may  qiwstioa  why  we  eliould  advoratft  ila 
•bolition  in  connection  niili  milwiiv  finance.  The  wasoo  is  tliat  likin  bamew 
bother  il»  tmder  directly  and  hinder  the  milway  indirertlv.  Kailwavs,  wv  nuiv 
say  oiice  for  all,  deiwiifl  upon  the  trader..  What  hiirtB  the  trader  immediately  \mm 
the  railroad  eventually.  T}"'-refr>re,  in  order  to  iiwiire  the  prosperity  of  tlie  raiJnmd 
one  niiiit  endeavor  to  i-  ...  ,  ■  tlic?  difficulties  wliicli  lie  in  the  way  of  tlie  trader 
Cri'-iiv-rally  Bpeaking,  there  .is  .hardly  any  other  i.ii8titiitii.>u  lliat  is  retarding  tlie  de- 
velopment of  railway  traffic  umto  seriously  than  the  ini.poffl.tion  of  likin  along  tlio 
railways..  The  ciidicult)-  d(.M?g.  not  lie  so  much  in  the  amonnt  which  ii  collected  m 
It  does  in  the  delay  and  dafna..|?ep;  the  cost  of  paying  the  tax«,  and  other  inconvc- 
iiiencee^  w.hich  ariae  from  th  '     i  ions.    Indeed,  the  costs  of  the  trader  in  Mving 

hiB  taxea;  ans'  often  more  than  liif  ta,xc3  themwlves.    The  reported  corruption  ext.or- 
tion,,  and  purpiMely  .committed  damage  t.o  gowis  bv  the  likin  collectors  uix»n  lielplesa 
traderB  are  too  notorious  to  need  emphasis.    When  thcM-  facts  are  taken  into  account 
it  :»  really  a  credit  to  onr  traders,  tliat  they  can  still  survive.  ' 

.But  wi'tliout  goin|i  further  into  the  question,  we  feel  it  Kife  to  say  t.hat.  the  abolition 
of  .such  barri.er8.  wi.ll  not  only  m,eet  mth  the  heart,/  welcome  of  the  honest  trader 
but  will  m  well  prove  a  boon  to  the  commerce  of  the  whole  countr>'.  And  it  is  bv 
the  development  of  our  commerce  tkat  our  railwa^-s  may  earn  more  money  thiw 
prepa:ri..n^  to  meet  the  approaching  fin.anci.al  difficiiltiee.  What  is  lost  by  the  aboli- 
tion of  li.kin  will  Ixs  inoro  than  made  up  bv  t.he  inciWBe  of  railway  revenue  To 
make  up  the  lew  of  funds  of  the  M„in.,igtrv  of  Finance,  resulting  from  this  abolition 
the  Government  can  easily  reqnire  the  rail  wave  to  crudit  the  Slinistry  with  a  lump 
iuiii.  every  year  .eoml  to  t.lie  hkiu  revenue  derived  from,  railway  tame,  which  the 
railways  are  probably  wi.lling  to  do.  By  so.doi.ng,,  t,he  Government  mill  have  everv- 
thing  to  ,gaii.n  and  noth,i.og  to  lost?.  So  it  is  .8a.fe  to  say  that  this  is  one  o.f  t..he  very  few 
reiormii  w,liich  ■will  bring  benefit  to  all  .and  harm  to  none.  The  only  ijeople  that  will 
.stitier  from  tliis  reform  mil !»  the  .liki,n  ,rua,Bere,  and  it  is  very  likely  that  thev  will 
,»ai«j  every  opposition. 

The  competition  between  our  commerce  and  indu8t,ry  and  those  ol  other  countries 
algo  dem..a,«d.a  the  removal  of  tlie  likin  obstacles  along  the  raEways.  In  this  ,regard 
we  ,h,ave  to  remark  t.liat  not  only  the  cu.sioms  t.ari„,i!8  but  also  all  atate  railways,  and 
to  a  certain  extent  even  private  m,i„,|,wav8,  in  other  countries  invariably  make  sijeciul 
ciorts  t.o  help  domestic  indiisUj^,  GernMi.iiy,,  Belgium,  Switzerland,  France,  Japan 
etc.,  are  some  ol  the  most  obvious  iE8t.ance8  where  customs:  and  railway  tariffs'  are^ 
well  ,known  to  ,h.:ave  been  useil  to  protect  h':»!j:i.:'  industn',  and  their  resufts  are  iusti- 
:f)iing^_t|ie:!xp:nicl  But  we  liave  Iwen  .foUowing  a  diametrically  different  .policy. 


Instead  of  helping  our  liou.te  commerce  and  indwtry  by  showing  them  favora" "ire 
olMtru<:t  t.hem  in  tlieir  uphill  struggle  .against  foreign  competition  and  pkce  tliem 
.ai,  .a  ,great  disadvantaee  by  subjecting  them  to  the  numerous  i,nland  impositions 
wh,i„le  exemptriig  t,he  foreign  conipetitofH.  For  it  is  only  imported  goods  that  can 
be  lrtii68,hipped  to  any  opm  prt  in  the  cou,nlr>'  ujwn  paying  a  nominal  ad  valorem 

duly  at  t_he  p >.rt  of  entry,  while  there  la  no  way  oimju  to  tlie  home  trader  by  whidi  ho 

,ri in  V  ii va. 1 1  1 1 1, inse  1 1  oi  s i ,i ,j i i lar  ini in u ni i k^B .  This  is  not  on  1  y  harn,if ul ,  but  u,n,j ust  and 
.d  n  aloiK,,'  IS  enough  to  p,revent  ou,r  trade  and  industry  from  cairJiing  ui) 
wilt  I  i,,i„H„«:;  <jt  our  competitors,  to  say  nothing  of  the  numerou,8  other  serious  ~' dis- 
•dvatiiagw  w,iijch  our  industry  has  to  face  in  it.8  uphil  struggle.  Inasmuch  m  we  .are 
redirtiiued  from  ,raisiii.g  o.r  adjusting  our  absurd  cusl-oins  tariffs,  we  have  no  ot.lier  wav 

;«  iw *P  our  Iwnic  indu:-  ■        :  !ian  to  pla.< -e  them  on  a  fair  basis  with  foreign  co,m,petition 

liy  removing  t,he  olMtacles  ,resttlting  from  inland  taxes. 


I  A..IC.l,.fff  D« 


C'liina  is  one  of  the 
<  1 :  i  t  ies  are  con  r  ere  eel , 

hiiais.    There  are  no 


very  few  countries  where,  so  far  as  imporfc^ 
goo<ls  fr(,»,ni^  a„li  source^  are  li-t^ated  o,u  tlie  same 
preferential  duties.    There  is  supposed  to  he 


CHINA. 


.3.1 


a  tiniform  tax  of  5  per  cent  on  all  imports,  but  in  many  eases  there 
are  specific  duties  that  amount  to  less  than  5  per  cent  ad  valorem. 
A  commission  has  recently  prepared  a  revision  of  the  Chinese  cus- 
toms tariff,  with  the  object  of  making  the  specific  duties  more  nearly 
emiivalent  to  5  per  cent  ad  valorem,  but  tliis  has  not  yet  gone  into 
eflect. 

The  above  statements  should  not  bo  understood  as  indicatin|j  that 
there  are  no  preferential  conditions  in  the  import  markets  of  China, 
as  this  would  be  far  from  the  facts  of  the  situation.  To  the  interests 
controlling  shipping,  termioal,  godown  (warehouse),  and  other 
transportation  lacilities,  there  are  very  substantial  advantages.  In 
Chitia,  moreover,  there  are  a  number  of  very  unusual  features  in  this 
connection;  for  example,  China  is  one  of  the  few  large  nations,  if 
not  the  only  one,  tliat  permits  other  nations  to  handle  coastal 
shipi)ing  and,  more  particularl}^^  shipping  01,1  inland  waters..  The 
control  of  this  coastal  and  inland-waters  shipping  and  tlie  facilities 
that  go  with  it  constitutes,  to  say  the  least,  a  Very  gi'eat  advan- 
tage to  the  trade  of  tlie  interests  associated  therewith. 

TREATY  PORTS. 

When  a  port  or  trade  center  is  thrown  opan  by  treaty  or  procla- 
mation to  foreign  trade  and  residence,  it  is  known  as  a  "treaty 
port"  or  "open  port."  This  may  be  a  seaport  in  the  ordinary 
sense  of  the  word  or  it  may  be  an  inland  trade  center  many  miles 
from  the  seacoast.  The  first  five  treaty  ports  were  opened  by  tlie 
treatv  of  Nanking  in  1842;  they  w^ere  Shanghai,  Canton,  Amov, 
Foochow,  and  Ningpo.  Since  then,  tlie  number  has  been  increasecl 
until  there  are  now  about  80,  covering  the  greater  part  of  the 
country,  particularly  along  the  seacoast  and  the  Yangtze  Valley, 
Tlie  most  important  from  the  standpoint  of  markets  for  transporta- 
tion materials  and  equipment  are  probably  Shanghai,  Tientsin,. 
Hankow,  Dairen  (Japanase  leased  territory),  and  Canton,  The 
British  leased  territory  of  Hongkong,  of  course,  is  a  very  important 
bnsiness  center  and  a  reshipping  port  for  all  parts  of  South  China, 
French  Indo-China,  and  the  rhilippine  Islands. 

Peking  is  also  an  important  business  center,  but  while  there  are 
a  gi-eat  many  foreign  residents  and  business  concerns  outside  tlie 
Legation  Quarter,  it  is  not  a  treaty  port. 

CONCESSIONS  AND  SETTLEMENTS. 

Concessions  and  settlements  are  described  by  Dr.  Tyau  as  follows: 
(1)  "A  concession  or  piece  of  ground  conveved  by  deed  of  grant 
m  perpetuity  to  a  lessee  State  for  a  residence  of  its  nationals,  tlie 
same  to  be  administrated  by  it  *  saving  the  sovereign  rights  of  the 
Eniperor  of  China,'"  and  (2)  "a  settlement,  or  site  selected  for  tlie 
residence  of  all  foreigners,  within  which  thev  may  organize  them- 
selves  mto  a  municipality  for  certain  purposes  and  bo  governed  by 
their  elected  representatives." 

(hitside  of  its  participation  in  the  administration  of  the  munici- 
pality of  Shanghai  and  the  Legation  Quarter  of  Peking,  the  United 
btaies  has  no  concessions  or  foreign  settlements  in  China. 


-lillli*' 

■"IIP 


ft9 


RAILWAY   MATEKLALS,,   EQUIPMENT,   AND  SUPPLIES,^ 

TKA-UB  ,IiAWS« 


C..^on8:«lar  juriscliftioii,  extra territorialitj,  concessions  and  foreign 
settlements  m  treaty  ports,  railway  area  concessions,  raOway  treaty 
loans,  and  a  number  of  other  ma^ 

mwhicli  to,ljveanddol>iisiness,.  Dr.V.  K.Wellington Koo's  '''Status  of 
Ai,iBiis  in  Qmm ' '  and  Dr.  ,M.  T.  Z,.  Ty aii's  * "  Treaty  Obligations  Between 

^ fina  and  Other  States'''  are  botli  interesting  reading  to  students 

of  this  subject  and  form  very  haiul\-  reference  works  for  foreigners 
residing  and  doing  business  in  China.  It  is  probably  tni,e  that  tliese 
publications  are  written  from  the  Cliinese  viewpoint  on  many  of 
the  points  in  controversy,  but  tliey  are  certainly  reliable  as  regards 
information  and  m  a.(!dition,  are  good  examples  of  the  feeling  of 
many  of  the  educated  Chinese  concerning  Uieir  present  position 
and  condition. 

TIAIING  CENTEta 

The  order  of  importance  of  the  several  trade  centers  from  the 
standpoint  of  imjiorts,  ex|'>orts,  and  sliipping  is  probably  as  follows: 
iShanghai,  Hongkong,  Hankow,  Tientsin,  and  Canton.*  Dairen,  of 
course,  is  a  very  important  port,  but  the  Japanese  '''sphere  of  influ- 
ence" m  all  of  Soutli  Manchuria  puts  this  trade  center  in  a  class  by 
Itself.  Th.e  same  remarks  apply  -to  Tsingtau.  Both  these  porta 
have  nnasually  good  harbor  facilities. 

It  should  he  rememhered  that  Peking  is  the  political  center  of 
^CMna,  and  particularly  that  this  is  the  headquarters  of  the  Ministry 
of  Communications,  the  branch  of  the  Chinese'  Government  in  control 
of  the  railwavs  and  the  postal,  electrical,  and  shipping  departments 
It  can  fairly  be  said  that  there  is  a  growing  tendency  to  control  pur- 
chases for  the  various  lines  of  the  Government  railways  through 
the  Ministry  of  Communications,  and  it  is  quite  probable  that  m 
time  ail  general  contracts  for  materials  an(l  equipment  for  these 
lines  will  he  handled  from  Peking. 

Shanghai,  at  present,  is  the  lai-gest  importing  and  exporting  center, 
hut  Hankow  may  in  tiiiio  justify 'its  title  of  tlie  "Chicago  of  China/^ 
on  account  of  its  growing'  importance  as  an  exporting  center,  and, 
particularly,  its  proximity  to  the  somrce  of  supply  of  many  of  the 
exported  products. 

WDUSTEIAL.  CENTEES. 

At  present  the  industrial  centers  are,  in  general,  largely  the  same  as 
the  trade  centers,  but  a  forecast  of  future  development  is  far  beyond 
the  scope  of  the  writer's  investigation.  It  seems  natural  to  conclude, 
however,  that  this  development  will  follow  past  precedents  and  that 
localities  having  the  natural  advantages  of  ample  labor,  fuel,  and 
shipping  m,aterials  (such  as  the  neighborhood  of  the  port  of  Chin- 
wangtao)  will  see  important  developments  in  the  future.  Hankow, 
no  doubt,  Will  become  one  of  the  very  important  points,  although 
this  place  will  be  somewhat  handicapped  by  the  fact  that  the  Hupeh 
man  is  not  nearly  so  robust  and  capable  of  standing  hard  work  as 
tte  laborers  from  some  other  parts  of  China.  Pukow,  on  the  Yangtet 
Kivcr,  IS  suggested  as  one  of  tlie  pointa  havmg  considerable  ftdvaa- 
tage  from,  the  standpoint  of  railway  and  Aipp:ing  facilities. 


m,  GENERAL  TRANSPORTATION  CONDITIONS. 

PEIMITIVE  MEANS  OF  TRAVEL. 

It  is  probably  true  that  the  ordinary  means  of  transportation  in 
vogue  to-day  m  China  represent  in  general  more  primitive  methods 
than  those  of  any  other  country,  not  excepting  India.  The  traveler 
on  larid  can  be  conveyed  by  horse,  sedan  chair,  cart,  w-heelbarrow, 
mule,  litter,  camel,  jinrikisha  (drawn  by  coolies),  or  he  can  walk. 

Commodities  are  carried  by  wheelbarrows,  carts,  pack  horses, 
mules,  donkeys,  oxen,  camels,  and,  to  a  very  surprising  extent  by 
vehicles  drawm  or  carried  bv  human  beings.  'One  of  the  earlv  objei 
tions  to  railways  was  that  they  would  produce  unemployment  among 
the  multitude  of  people  employed  in  transportation  pursuits,  but 
even  these  classes  seem  now  to  appreciate  that  the  railwavs  increase 
the  opportunity  for  this  kind  of  labor— and  at  rather  be*tter  wa^cs 
than  formerly  prevailed.  Persons  interested  in  primitive  transporla- 
tion  can  certa,inly  find  a  most  interesting  field  of  study  from  one  end 
of  China  to  the  other.  o  j  u 

A  Chinese  horse  or  mule— somewhat  undersized—carries  from  250 
to  325  pounds,  depending  somewhat  on  the  bulk.  Camels  carry 
probably  50  per  cent  more,  but  are  used  onlv  in  the  north.  Wheel- 
harrows  carry  from  250  to  400  pounds,  but  seldom  make  more  than 
16  miles  a  day  and  frequently  less.  Carts  carrv  varving  loads,  de- 
pending on  the  number  of  cooMes,  mules,  donkevs,  or  Chinese  horses 
ctrawmg  them.  The  combinations  of  donkevs r  coolies,  mules,  etc., 
that  are  seen  from  place  to  place  drawing  vehicles  are  never  ending. 
f  M  ?f ^  .  i^?***®*"  photographed,  very  much  to  the  displeasure 
ot  ttie  Mongol  driver,  a  camel  hitched  to  a  cart— an  unusual  com- 
bination even  for  this  part  of  China,  which  is  most  interesting  from 
a  transportation  standpoint. 

CHAKACTER  OF  CHINESE  HIGHWAYS. 

China's  reputation*  for  bad  roads  and  streets  is  quite  deserved 
In  the  south,  where  wheelban-ows  are  most  used,  the  paths  are  unil 
lormly  bad.    In  the  central  and  northern  parts  of  the  Republic 
some  even  of  the  most  important  highways  are  had  almost  beyond 
aescription,  but  m  other  places  roads  were  seen  that  were  quite  passa- 

and  Droh?htv^w!ilT^^^^  ^^/''  highways  were  substantially  built 
and  probably  well  mam  tamed,  as  is  evidenced  by  the  really  ^ood 

Yi!nfRivr?n  Tn'l  ""ft^  ""T"'^^^  ^^^  ^^'  at^Kalgan,  oief  the 
vn  .5. !  i!  V  •  ^  ''^''^'  i  ^^^  ¥^''  ^''^^^'  ^is  ^^'^S^  is  undoubtedly 
^1^  f -41.  '"^  i^  good  condition.  The  mortar  appears  to  he  pure 
hme,  with  no  san^  or  other  materials  as  a  filler. '  %is  bridge  firms 

^'.^T:^^!^^^!!  ^^^^^^^^^^12^  ^^  ^^3?  ^<>«t  important 


caravan  routes  of  the  world.   "The  traffic  from"KalVa7To'P(rHni^l^ 

by  the  Peking-Suiyuan  Railway.     The 


to  TJrZ«  fn  ifT*^  routes  from  Kalgan  are,  one  to  the  northwest 
bv  thf  pivi,?  «*?  '^^  ^^^K^  Suiyuan.  The  latter  ^yill  be  replaced 
by  the  Pekmg-biuyuaa  Railway,  upon  the  completion  of  the  line 


10C229°— 19 S 


Sit 


S4 


BAILWAY  MATBEIAM,  EQUIFMES-T,  A:WB  SUPPLIES. 


CHINA- 


35 


from  Fengdian,  to  Siiiyiian,  which  is  n,ow  under  construction,  Tliero 
is  no  wheeled  traffic  over  this  old  caravan  road,  everything  being 
carried  by  pack  animals. 

In  sonie  of  the  cities  of  North  China,  the  writer  saw  comiderable 
work  in  progress  in  the  streets..  This  was  particularly  the  case  in 
Peking,  where  some  very  substantiai  work 'was  being  carried  out. 
A  movement  for  the  building  of  better  roads  appears 'to  be  getting 
under  way,,  and  one  of  the  stimulating  influences,  is  the  great  deliglit 
nianifested  by  the  Chin^ese  in  running  any  kind  of  an  automobile  that 
they  are  able  to  acquire.  There  is  a  good  deal  of  modern  road-making 
machinery  in  Cliina,  particularly  one  make  of  British  steam  road 
roller,  and  there  is  likely  to  be  a  very  considerable  demand  for  high- 
way building  materials  and  machinery  in  the  course  of  the  next  few 
years. 

In  connection  with  the  above  caravan  road  passing  through  Nan- 
kow  Pass.,  it  Sieems  proper  at  this  point  to  mention  the  GreatWali  of 
Oiina.  The  Peking-Suiyuan  Railway  follows  the  same  gorge  as 
the  caravan  road,,  and  passes  under  the  ridge  of  the  West  Hills  only 
a  few  hundred  feet  from  the  gate^  where  'the  caravan  road  passes 
through  the  wall.  The  wall  in  this  vicinity  is  very  substantially 
built,  and  although  it  is  doubtless  m,any  years  since  repairs  have  been 
made,  much  of  rt  is  still  in  surprisingly  good  condition.  All  tlie 
mortar  aeeniB  to  have  been  pure  'time,  with  no  .sand  or  other  filler. 

COASTAL  'CARRIERS. 

With  sneh.  a  laige  population  living  along  the  soacoasts  and  navi- 
mble  riversi  tllere  has  natiir:al,.ly  grown  up  a  very  extensive  coastal 
Miipping  business.  A  :niim,li«  of  these:  companies  have  been  very 
profitable.  The  principal  ones  are  under  the  British,  Japanese, 
Chinese,  and  French  fl.ags.-~thia  order  representing  their  relative 
prew.ar  importance. 

The  carrying  of  Chinese  products,  as  well  as^  foreign  goods,  between 
treaty  ports  on  the  Chinese  co.ast  by  sliips  under  the  Hags  of  foreign 
nations  is  the  only  instance  in  the  world  m  which  such  a  considerable 

f-ercentage'  of  a  large  co,astwise  traffic  is  carried  in  foreign  botto.ms. 
n  other  countries  this^  business  is  usually  reservetl  exclusively  for 
the  ships  of  the  countrv.  .In  .ma.ny  instances  the  foreign  control 
of  Chinese  shipping  facdities  haa  a  very  ,grea.t  influence  m  causing 
the  business,  to  go  to  the  countries  controlhng  the  shipping. 

W?1R  AND'  CANAL  CARIIBKS. 

The  many  navigable  rivers,  par^ticularly  the  'Yangtze,  and  the 
.great  number  of  canals  (many  of  them,  small  streams  canalized) 

.have,  ^  througjhout  historic  times,  borne  a  large  volume  of  tr.affic. 
The  Chin.e.se  junk,  which  is  much  tlie  same  t.o-day  as  it  was  centuries 


ago,  seems  capable  of  navigat,ing  all  kinds  of  wat.ercourses,  from  the 

high  seas  to  canals  through  h,ighly  cultivated  areas  where  the  junks 
sometimes  present  the  appearance  of  moving  through  grain  fields 
on  wheels.,  A  number  of  the  sam,e  strong  companies  that  carry  on 
the  coastal  shipping  also  liave  fleets  on  the  navigable  rivers,  par- 
ticularly the  Yangt»,  and  here  again  one  finds  the  very  unusual 


arrangement  of  foreign  bottoms  carrying  native  products  as  well  as 
foreign  goods  on  this  inland  waterway.  In  all  other  important 
countries  aliens  are  excluded  from  such  business.  That  these  coastal 
and  inland  water  carriers  are  real  competitors  for.  business  is  shown 
by  the  low  freight  rates  that  the  Shanghai-Nanking  Railway  has  to 

frant  to  attract  business  between  Shanghai   and  Chinkiancy  and 
lanking. 

Without  question,  it  would  be  to  the  great  advantage  of  China  m 
a  whole,  and  in  the  end  to  the  interest  of  most  of  the  holders  of  the 
treaty  loans,  if  all  future  construction  of  transportation  facilities 
were  carried  out  as  part  of  a  comprehensive  scheme  for  the  entire 
country;  and  in  the  planning  of  such  a  complete  system  careful 
consideration  should  be  given  to  the  fullest  possible  utilization  of 
these  waterways.  Particular  attention  should  be  given  to  this 
matter  in  connection  with  the  proposed  construction  of  competin<T 
railways  that  are  not  likely  to  pay.  *' 

DEVELOFMENT  OF  CHINESE  RAILWAYS. 

HISTORICAL  SUBVfiV. 

HrrRODUCTION. 

The  history  of  the  Chinese  railways  dates  back  to  1863.  Mr. 
P.  H.  Kent  (British),  in  his  carefully  prepared  book  ''Railway 
Enterprise  in  China,"  divides  the  development  into  three  periods- 
first,  from  1863  to  1878;  second,  from  1879  to  the  Chino-Japanese 
war  in  1894;  and  third,  from  that  time  until  the  preparation  of  his 
book  in  1907.  Mr.  M.  C.  Hsu  (Chinese),  in  his  equally  well-prepared 
study  '^Railway  Problems  in  China,"  divides  the  development  mto 
three  different  periods— first,  from  1863  to  the  Chino^apanese  war 
in  1894;  second,  from  1895  to  the  Russo-Japanese  war  in  1904  (this 
period  marked  by  the  "Battle  for  Concessions");  and  third,  from 
1905  untd  the  date  of  his  book,  1915. 

For  students  of  Chinese  railway  history,  the  above-mentioned 
books  will  be  found  very  interesting.  The  former  probably  provides 
the  best  presentation  from  a  fair  British  standpomt  and  the  latter 
the  best  from  a  fair  Chinese  viewpoint.  Mr.  Kent  characterizes  his 
divisions  thus:  Fu-st,  "foreign  attempts  to  persuade  the  Chinese  to 
allow  the  introduction  of  railways;"  second,  "movements  emanating 
from  Chmese  mterests;"  and  third,  the  "era  of  concessions  with  the 
features  of  foreign  control"  The  principal  feature  of  the  second 
period  was  the  building  of  what  is  now  the  Peking-Mukden  Railway 
between  Tientsm  and  Shanhaikwan,  but  the  Chinese  mterests  had 
very  substantial  foreign  du-ection  and  engmeering  assistance— 
prmeipally  British.  This  line  was  built  very  largely  in  connection 
Tn  h  7u  t^^?|*>P"?f:»!  «^  }^^  Kaiping  coal  field,  now  consolidated 
under  the  Kailan  Mining  Administration.  Mr.  Hsu's  division  seems 
i^l  Te  folio we?^      of  the  Chinese  railway  markets  and  will  accord- 

PBBIOD  PROM  1863  TO  1891. 

All  authorities  agree  that  the  first  railway  proposed  in  China  was  a 
line  from  Shanghai  to  Soochow,  the  proposal  taking  the  form  of  a 
petition  under  date  of  July  20,  1863,  fiom  27  foreign  firms  to  Li 


36 


RAILWAY  MATKRIALS',  EQUIPMEHT,  AWD  SUPPLIES. 


Hung  ■Oifog,  Aen,  govern,or  of  Kiangs^u.  The  petition  met  with 
dec'itled  clisai.>proval  and  the  project  was  finally  dropped. 

The  next  incident  was  a  proposal  for  the  construction  of  a  com- 
preheii8iT(,»  system* of  railways  thronghont  China  proper,  prepared 
and  presentecl  to  the  Manclin  Government  in  1864  by  Sir  MacDonald 
Steptienson,  a  distingu.ished  British  engineer  who  liad  for  about  20 
years  been  prominently  connected  witli'"  the  railwa}^  in  India.  The 
proposal  w:as  based  on  liis  view  that  "  a  comprehensive  system  decided 
on  at  the  outset — all  lines  to  be  made  in  conformity  with  it — would 
avert  the  evils  of  the  English  want  of  such  a  system,  where  in  many 
cases  double  capital  has  been  laid  out  to  perform  work  which  one 
expendit'ure  could  have  adequately  provided  for,  seriously  prejudic 
km  the  shareholders  on  both  lines,  'and  depriving  the  pidblic  of  the 
full,  economical  advantage  which  under  a  sound,  organised  system 
would  have  obtained,"  There  was  then,  as  now,  no  room  for  (iifler- 
cnce  of  opinion  as  to  the  co:rrectness  of  his  basis,  though  there  might 
'be  some  cpiestion  as  to  the  correctness  of  the  locations 'oi  Ms  system. 
The  facts  probably  arc  that  had  his  proposal  been  accepted  and 
carried  out,  with  Oliina  retaining  actual  control,  under  the  guidance 
of  effective  foreign  direction  (as  '"in  the  case  of  the  M'aritime  Customs 
and,  the  hiter  Salt  Gabelle  Administration),  the  progress  of  China  as 
II  whole  would  have  'been  much  enhanced,  and  the  nation  would  not 
be'  confronted  with  the  unfortnnate  com  plica  ti  one,  in  the  shape  of 
railwav  treaty  loans,  that  now  restrain  its  development. 

Sir  MacDonald  Stephenson,  by  virtue  of  his  credentials  and  high 
professional  standing,  was  accorded  an  attentive  hearing,  but  liis 
proposals  were  never  acted  on  by  the  Cyhinese  authorities,  whatever 
'consideration  they  m.ay  have  had. ,,  China  thus  faileil  to  derive 
iidvantage  from,  invaluable  advice  such  as  probably  ,no  other  nation 
ever  had  at  such  an  opportune  time — proposals  that  would  'have 
'benefited  not  on„ly  the  railway  situation  but  the  entire  industrial 
development  of  the  country. 

The  first  railway  actually  'bu,ilt  in,  China  w,as  a  line  of  2-foot  6-inch 

fauge  from  Shanghai  to  W'oosung,  ,a  distance  of  more  than  12  miles. 
Ms  line  was  first  proposed  ,in  1865,  but  because  of  a  series  of  delays 
,it  was  not  finally  co,aipleted  until  December,  1876.  There  is  con- 
■iderable  difference ''of  „ 'opinion  regarding  the  circumstances  in  con- 
nection with  the  construction  of  this  line,  but,  whatever  the  ,facts 
are,  the  result  was  that  the  Ch:inese  authorities  p'urchased  the  rights 
of  Jardine,  Matheson  &  Co.  and  other  interested  parties  and,  on  final 
payment  of  purchase  m,oney  on  October  20,  1877,  service  was  di,8- 
continued,  the  track  was  torn  up,  and  the  m,aterial  and  equip,ment 
were  shipped  to  the  island  of  Formosa,  where  apparently  no  use  was 
m,ade  of  tuem,. 

The  ,next  incident  was  the  building  in  1878  of  7  miles  of  a.  mule 
tramway  in  connection  with  the  development  of  the  Tangshan  Col- 
liery. This  was  the  begi,n,ning  of  the  most  successful  railway  built 
thus  far  in  China.  The  primary  object  of  this  tramway  was  to  trans- 
ort  coal  from  these  mines  for  the  use  of  the  China  Merchants  Steam 


Navigation  Co.,  the  director  general  of  which  was  then  a  very  able 
C'liinese  named  Tong  Kin,g  Sing,  who  has  not  been  given  duo  credit 
lor  his  efforts  in  advancmg  tlie  industrial  development  of  China. 
li  Hung  Chang  was  then  viceroy  of  Chihli,  and  instead  of  opposing  the 
project  he  lent  his  powerful  influence  in  favor  of  it.    Tong  King 


CHIKA. 


37 


Sing  ably  forwarded  the  building  of  this  line  by  his  assistance  and 
influence.  Mr.  R.  R.  Burnett  (British)  was  chiel  engineer,  and  early 
m  the  development  Mr.  C.  W.  Kinder  (British)  was  made  resident 
engineer.  Mr.  Burnett  retired  in  1882;  Mr.  Kinder  then  became 
chief  engmeer  and  retained  the  position  for  many  years,  durino'  the 
developments  leading  up  to  the  present  Peking-Mukden  Railway 
system.  It  was,  no  doubt,  largely  because  of  his  foresight  and 
resourcefulness  that  this  line  was  not  built  on  a  narrow  gauge.  He 
appreciated  the  vast  importance  of  the  wider  gauge  and  to-day 
China  has  at  least  one  factor  in  its  railway  development  for  which  to 
be  thank-ful,  namely,  the  almost  complete  uniformity  of  gauge.  This 
result  is  probably  due,  to  a  large  extent,  to  Mr.  Kinder's  action  on 
this  initial  Ime.  Although  this  first  line  was  clearly  authorized  as  a 
mule  tramway  and  the  use  of  other  motive  power  was  prohibited, 
Mr.  Kinder,  recognizing  that  success  meant  the  use  of  steam,  made 
his  plans  from  the  first  with  that  in  view.  The  first  locomotive  was 
homemade  and  was  known  as  ''The  Rocket  of  China." 

In  1882  extensions  were  undertaken:  the  project  then  became 
known  as  the  Kaiping  Railway  Co.,  and  Mr.  Wu  Ting  Fang  was  made 
general  manager.  While  these  developments  met  with  much  oppo- 
sition and  many  discouragements,  one  addition  after  another  was 
made  until,  at  the  opening  of  the  Chino-Japanese  war  in  1894,  the 
line  was  completed  and  m  operation  between  Tientsin  and  Shanhai- 
kwari,  a  distance  of  174  miles,  and  an  additional  40  miles  northeast 
of  the  latter  point  was  under  construction  and  nearing  completion 
Surveys  had  also  been  made  for  a  distance  of  about  160  miles  of  a 
proposed  extension  to  Kirin,  the  capital  of  the  Province  of  Kirin,  in 
central  Manchuria,  about  450  miles  from  Shanhaikwan. 

The  results  of  the  war  and  the  ** Battle  for  Concessions"  rendered 
impracticable  such  extensions  under  Chinese  control. 

PERIOD  FROM   1895  TO   1905, 

The  second  period  might  be  divided  into  two  parts.  First,  the  con- 
test to  secure  railway  concessions  was  one  of  the  chief  features  of  the 
Battle  for  Concessions"  waged  from  the  close  of  the  Chino-Japanese 
war  until  the  Boxer  uprising  in  1900.  '^Spheres  of  influence^'  were 
marked  out  and  claimed  during  this  time.  The  second  part  of  this 
period  was  marked  by  the  diverging  interests  of  some  of  the  powers 
during  the  Boxer  uprising,  particularly  the  efforts  to  secure  control 
of  the  Peking-Mukden  hne  and  the  extension  of  this  line  into  the 

Ir^'if  f^l^  ""^  ^'^  ""'^I  ""^  ^ti^^:    ^^'^  ^^^s  foUowed  by  what  might 
be  caUed  the  policy  of  consolidating  these  concessions. 

PERIOD  FHOM   1906  TO  IMl- 

bef^^eitr/rhfr'hi^  '^'^  ^^.^''^  ""^  ?^^^^^^^  i^  ^^^^' 

Detoie  cittier  the  Chmo- Japanese  or  the  Russo-Japanese  war,  this 

reahzation  became  much  more  potent  after  the  latter  war  and  has 
lesulted  in  a  very  ^general  desire  among  all  classes  of  Chinese  to  see 
the  construction  of  railways  carried  out  in  all  parts  of  the  country. 
,  lUe  period  be^^mnmg  with  the  year  1906  may  also  be  divided 
m^nf^r  f^'^'-^T^'  ^^'^^  \^^V^  ^''  Sheng  Hsuan-huai's  advance- 
ZTmM  ""  f  *^^^^^TI  ""^  ^¥  ^^i^istry  of  Communications  in  Janu- 
ary,  1911,  and  second,  from  that  date  to  the  present  writrng.'   During 


BAILWAY  MATllIALS,  .EQUIPME¥T,  AND  SUPPLIES. 

this  first  interval  mEch  interest  was  manifested  by  the  provincial 
authorities,  many  efforts  were  made  to  raise  money  among  the 
Chinese,  and  a  number  of  concessions  were  granted  to  provmciaJ 
organizations  to  build  lines,  particularly  in  Hupeh  and  Honan.  In 
general,  however,  these  efforts  did  not  accomplish  any  material 
results.  The  Board  of  Communications,  which  is  now  known  as  the 
Ministry  of  Communications,  and  will  be  so  referred  to  hereafter,  was 
creftted  by  Imperial  Edict  November  6,  1906,  to  control  the  rail- 
ways, posts,  telegraphs,  and  telephones,  Mr.  Tsen  Chun-hsuan, 
when  president  of  the  Ministry  ot  Communications  in  1907,  peti- 
tioned the  Throne,  recom,monding  that  China's  railways  be  brought 
'under  unified  management,  but  no  action  resulted.  During  tliis 
period  the  cen;tral  Government  was  negotiatiner  the  Hukuang  R.ail- 
way  Loan  (that  is,  the  -.Loan  of  FourlTatioiis?'  England,  Gelmany. 
Prance,  and  the  United  States),  but  each  Province  was  desirous  of 
building  its  own  railways,  m  many  thought  that  in  this  way  the 
several  sections  of  China  would  secure  the  lajg©  profits  that  were 
expected  to  accrue.  Grand  Councilor  Chang  Chih-tune  formulated 
a  scheme  that  at  the  time  seemed  likely  to  satisfy  both  the  provincial 
authorities  and  the  central  Government^ — a  plan  that  might  hav© 
prevented  the  revolution  and  powihly  saved  tne  Manchu  D3masty — • 
but  his  death  in  October,  1909,  left  no  one  to  conclude  this  settle- 
ment. It  should  be  added  that  his  plan,  while  it  might  have  pre- 
vented or  deferred  some  of  China's  trouble,  would  hardlj'  have 
afforded  an  ultimately  satisfactory  solution  of  Chinese  railway 
problems.  The  end  of  this  first  period  found  China's  autiiorities 
much  divided,  with  intense  feeling  between  the  central  Government 
and  the  various  provincial  organizations,  .and  with  the  Powers  press- 
ing their  demands  for  the  condusion  of  the  Hukuang  Railway  Loan. 

DITILO'PM'INT  IN  KECINT  YIAES. 

The  second  part  of  this  period  has  witnessed  one  advance  after 
another,  so  tlmt,  notwithstanding  the  great  political  changes  that 
have  occurred  during  this  time,  Chuia  to-day  has  on  the  whole  a  well- 
crystalized  working  arrangement  for  the  nationalizing  of  ite  rail- 
ways, particularly  wh^en  one  considers  the  m.any  difficult  obstacles 
that  nave  had  to  be  overcome  and  the  discouragmg  restrictions  con- 
nected with  some  of  the  railway  loans. 

Mr.  Sheng  was  raised  to  the j>residency  of  the  Mmistry  of  Communi- 
cations .in  Janu.ary,  1911.    .He  was  one  of  China's  foremost  men  of 


CHINA* 


39 


s  period.  He  .had  had.  extensive  business  and  administrative  expe- 
rience ;  he  was  one  of  the  lareest  stockholders  of  the  China  Merchants 
St€^a.m  Navigation  Co.  .and  the  Han-Yeh-Ping  Iron  and  Steel  Works, 
manager  of  the  Clii.na  Merchants  Steam  Navigation  Co.,  the  Pinghsi- 

ang  colliery  and  .railway,  the  Tayeh  iron.  m,ines,  and  the  Han-Yeh- 
Ping  iron  and  steel  plant,  director  of  Government  telegraphs,  admin- 
istrator general  of  the  .Pek,ing-Han.kow  Rai.iway,  and  vice  president 

of  the  'Muiistry  of  Com.,niunications.  Mr.  Sheng  was  highly  regarded 
bv  both,  the  .Peking  au.tho.rities  and  the  Chinese  gentry,  and  his 
.aDility  was  recognized  by  foreigners  and  natives  alike.  However, 
after  .he  had  put  through  m.easures  that  went  far  to  solve  some  of 
China's  .railway  difficulties,  there  arose  a  storm  of  objections  from 
various  sources,  particularly  from  the  Chinese  gentry,  resulting  in  the 
confusion  of  revolutionary  occurrences  in  1911.    He  was  dismissed 


on  October  26,  1911.  was  escorted  by  detachments  from  the  legations 
to  Tientsm,  escaped  to  Tsingtau,  and  later  went  to  Japan,  where  he 
died  in  1916.  His  first  actions  early  in  1911  were  to  negotiate  loans 
for  £2,000,000  and  £500,000  and  next  to  contract  with  the  Four 
Nations  banking  group  for  £10,000,000.  On  the  announcement  of 
these  loans,  the  people  became  much  excited  and  the  last  loan  was 
never  actuallv  floated. 

Mr.  Sheng  realized  that  China  must  have  a  settled  and  continued 
railway  policy.  He  apparently  decided  that  a  strong  centralized 
organization  was  the  proper  one  to  adopt.  He  then  proceeded  to 
carry  out  his  conclusions,  with  the  result  to  himself  above  men- 
tioned. With  support  of  Prince  Ching's  cabinet  he  obtained  the 
approval  of  the  Throne,  and  on  May  9,  1911,  a  most  important 
Imperial  Edict  was  issued,  proclaiming  in  part  as  follows: 

After  careful  and  repeated  deliberations,  the  conclusion  ie  reached  that  the  Nation 
must  possess  a  complete  system  of  trunk  lines  to  and  from  the  four  quarters  of  ita 
JPTntory  in  order  to  ad  minister  the  Government  by  a  grasp  on  the  central  pivot .  *  *  * 
Therefore,  we  desire  to  proclaim  explicitly  to  the  world  that  all  the  tnmk  railway! 
shall  he  btate-oWned ;  thia  shall  be  the  fixed  policv.  Trunk  railways  in  the  Provinces 
that  were  under  private  management  by  companies  established  before  the  third  year 
of  Hsuan  Tung  (1911)  and  that  have  been  delayed  in  construction  shall  immediately 
be  taken  over  by  the  Government  as  State-owned,  and  their  building  work  shall  be 
pushed  on  with  energy.  With  the  exception  of  the  branch  railways,  which  shall 
continually  be  allowed  to  be  undertaken  bv  the  people  according  to  their  abilitv  all 
perimssion  for  trunk  railways  formerly  granted  shall  be  canceled .  With  regard  totho 
details  of  the  manner  of  taking  them  over,  let  the  Ministers  of  Finance  and  of  Com- 
munications and  Posts  gravely  obey  this  decree  and  devote  their  whole  attention  to 
devising  the  fulfillment  of  it. 

Tins  was  followed  by  action  to  take  over  the  Canton-Hankow 
and  hzechwan-Hankow  lines,  then  in  the  hands  of  organizations  of 
the  Chinese  gentry  for  financmg  and  construction.  This  was  very 
shortly  followed  by  the  announcement  of  the  signing  of  the  Hukuang 
KaiJway  Loan.  These  actions  caused  much  excitement,  and  vigorous 
protests  were  made,  particularly  against  the  settlements  proposed  in 
return  for  the  expenditures  made  on  the  projects  named  above  The 
Government,  through  Mr.  Sheng  as  president  of  the  Ministry  of 
Lommunications,  followed  the  nationalizing  policy  with  firmness 
and  showed  no  signs  of  changing  the  policy  in  the  face  of  the  impend- 
ing crisis.  To  support  this  action,  troops  were  moved  into  the 
disturbed  districts;  this  fmther  excited  the  people,  with  the  ultimate 
result  that  Szechwan  passed  from  agitation  to  revolt,  shortly  followed 
by  Hupeh  and  Hunan.  The  avowed  revolutionists  and  cons titu- 
IK?!:'    ?/^^^^lf  grasped  this  as  their  long-awaited  opportunity,  and 

r&!%^"  of  the  Manchu  Dynasty  and  the  establishment  of  the 
Unnese  Kepubhc.  The  assertion  that  the  revolution  was  caused  by 
the  policy  to  nationalize  the  railways  and  the  concluding  of  the 
fi^^Zfi  f  ailway  Loan  is  probably  an  overstatement  of  tie  basic 
tacts  but  those  certainly  were  the  incidents  over  which  the  factions 
joined  issue.  It  is  interesting  to  note  that  the  policy  of  nationaliza- 
K.  1  r  ^^1''^'^  through  to  a  measurable  degree  by  the  Repub- 

have  &!^.n 'K^rf  W  '^  extremely  doubtful  whether  this  would 
nave  been  done  had  the  Manchu  Dynasty  survived 

iinH  n/i  mTf^'^l^^  Provisional  Government  in  power  from  the  later 

i^ond  illlftl  ^^^^^1\^^  ^^}h  ^^  P^^io^  between  the  First  and 
oecoud  Kevolutions,  was  to  retam  for  the  central  Government  aU 


M' 


BAILWAY  MATEBIALS,  EQl'lPMENT,  AXD  SUPPLIES. 


tli0  borrowing  powers.  This  was  strongly  opposed  by  the  provincial 
interests,  as  it  was  innng  the  former  jieriocl,  and  was  one  of  the 
principal  causes  precipitating  the  Second  Revolution  in  July,  1913. 
.Diirmg  this  time.  President  Yuan  Slii  Kai  empowered  Dr.  Sun  Yat 
ben  to  organize  a  national  corporation  to  finance  and  construct  future 
raiwajs  for  the  Chinese  Government.  This  resulted  in  the  organ- 
Ration  of  the  "Chinese  National  Railway  Corporation,  with  Dr.  Sun 
m  director  general  and  Mr.  George  Bronson  Rea,  of  the  Far  Eastern 
R-eview,  as  technical  secretary,  A  system  of  railways  approaching 
10,000  miles  in  length  and  extending  t^o  all  parts  of  the  country  was 
proposed  to  be  financed  and  constriictef  1  on  a  'program,  of  from  1 0  to  1 5 
.years,  wntemplating  an  expenditure  of  some  '1500,000,000  (gold'). 
when  Dr..  Sun  was  implicateii  in  the  Second  Revolution,  President 
Yuan  a.nnulled  his  powers  as  director  general  and  dissolved  the  corpo- 
ration.    One  substantial  result  of  this  incident  was  the  iieg<.tiating 


agreement 


,   as  rc|>rescnting  the  type  of  railway  loan 

granting  the  m;08t  favorable  terms  to  Oiina,  is  referred  to  at*" 

farther  along  in  this  report,  under  the  heading  of  "Railway 


ments.' 


agi'ee- 


Since  the  establishment  of  tlie  Republic  after  the  Second  R.ovolu- 
tion,  notwithstanding  the  lack  of  funds,  the  many  changes  in  officials, 
and  the  discouraging  restrictions  of  the  railway  loan  agreements,  very 
considerable  further  progress  has  been  made  in  nationalizing  the 
Chinese  railways  except  the  concessioned  lines.  At  the  present 
writing,  nearly '3,7110  miles  of  line  are,  so  far  as  the  loan  agreements 
will  permit,  under  the  control  of  the  central  Government  t.hrou,eh  the 
Ministry  o'f  Communications.  This  does  not  include  two  branch 
lines  in  Manchuria  amounting  to  130  miles,  now  practicaEy  under 
Japanese^  management,  although  nominally  Chinese  Government 
lines.  ^  There  is  also  nearly  3,000  miles  contracted  for  construction 
through  loan  agreement,  and  this  will  probably  be  added  to  in  the 
course  of  time.  This  does  not  include  a  considerably  lai'ger  mileage 
proposed  .and  claimed  as  under  agreement  'by  several  of  tne  Powers; 
while  much  of  tliis  will  probably  be  built  in  the  course  of  time, 
the  agreements,^  no  doubt,  will  be  much  mod,ified  before  the  lines  are 
undertaken.  The  objections  of  the  Provinces  have  either  been  over- 
come or  have  disappeared  to  a  large  extent;  they  probably  will  not 
obstruct  progress  m  the  future,  particularly  if  the  needed  railways 
are* 'built — ^wfiich  seems  to  be  the  chief  concern  at  present.  During 
this  period,  however,  on  account  of  the  lack  of  funas  and  other  con- 
ditions, there  has  'been  a  constant  tendency  to  complicate  matters  bv 
making  further  loans  on  any  available  as^t,  and  this  has  been  and 
is  now  a  -constant  handicap,  hindering  progress  along  the  best  lines. 
Some  examples  of  these  loans  are  those  on  the  Nan-Shan  (Kiangsi) 
Railway,  the  Pinghsiang  colliery,  the  Tayeh  iron  min^es,  and  the  Han- 
Yeh-Ping  iron  works  of  the  'Han-Yeh-Pmg  Co.,  and  'the  later  instances 
of  the  long-time  loan  on  the  Kirin-Changchun  Railway  and  the  short- 
time  loan  on  the  Peking-Suiyuan  Railway.  Most  of  these  loans  are 
in  foreign  hands,  and  in  some  instances  are  held  to  the  considerable 
disadvantage  of  China's  future  development. 

Regulations  have  been  issued  from  time  to  time  that  have  im- 
proved th©  situation.    Oae  of  the  very  credita'ble  achievements  has 


CHINA. 


41 


been  the  working  out  and  adoption  by  all  the  Government  lines  of  a 
very  excellent  system  of  uniform  accounts,  which  will  be  referred  to 
later. 

SPHERES  OF  INFLUENCE. 

''Spheres  of  influence"  or  "spheres  of  interests,"  as  they  are 
called,  were  established  as  the  result  of  the  "Battle  for  Concessions." 
One  of  the  principal  objects  sought  was  the  granting  of  concessions 
for  budding  and  opratmg  railways.  The  United  States  has  never 
made  any  claims  lor  a  "sphere  of  influence"  but  has  consistently 
contended  for  the  maintenance  of  the  "open  door"  for  all,  with 
opportunity  for  China  to  develop  as  a  whole. 

The  difficulties  encountered  by  the  Siems-Carey  projects,  and  a 
further  study  of  conditions  prevailing  in  the  country,  will  show  the 
great  obstacles  in  the  way  of  China's  developing  a  comprehensive 
system  of  its  own  railways,  particularly  if  not  carried  out  with  exclu- 
sively Chinese  capital.  The  history  of  the  Tientsin-Pukow  Railway— 
the  northern  part  built  with  German  capital,  materials,  and  equipment 
and  the  southern  part  with  British  capital  and  different  materials 
and  equipment— is  alone  sufficient  to  demonstrate  the  character  of 
existing  conditions. 

The  claimants  for  concessions  have  insisted  on  the  right  to  fur- 
nish capital  in  their  spheres  of  influence  for  any  projects  undertaken 
by  the  Chinese  for  which  other  than  Chines©  capital  is  used.  Re- 
etrictions  have  varied  all  the  way  from  the  simple  provision  just 
mentioned  to  long-time  leases  for  portions  of  territory,  with  conces- 
sions for  the  claimant  nation  to  budd  and  operate  railways,  includin*» 
zones  under  the  police  and  business  control  of  the  lessor;  in  some 
instances  these  concessions  have  carried  the  right  to  develop  and 
operate  other  resources  such  as  coal  and  iron  mines,  as  is  the  case  in 
Shantung  and  Manchuria. 

A  number  of  Cliinese  authorities  claim  that  the  principal  cause  for 
tlie  Boxer  uprising  was  the  opposition  to  the  granting  of  concessions 
during  this  period,  particularly  to  the  course  followed  by  the  Germans 
m  Shantung  and  the  Russians  in  Manchuria.     There  are  grounds  to 
support  this  belief.    The  Shantung  man  is  the  most  vigorous  of  the 
tlimese  people  and  at  least  the  equal  mentally  of  any  of  the  others. 
A  large  number  of  these  Shantung  men  yearly  go  to  South  Mandiuria. 
1  tie  people  where  th©  uprising  originated  thus  came  in  contact  with 
tJie  new  railways  and  the  rigorous  handling  of  the  natives  which, 
It  IS  clauned,  occurred  m  both,  instances.     Contrary  to  the  opinion 
sometimes  entertained,  the  knowledge  of  such  conditions  spreads 
with  surprising  rapidity  among  all  classes  of  the  Chinese.     In  this 
connection  it  was  interesting  to  find  that  Cliinese  newspaper  are 
published  m  many  parts  of  China,  and  many  of  these  are  quite  as 
sensational   as   some   of   the   extreme   publications   in   Occidental 
countries.     It  is  probably  true  that  the  two  most  strikmg  occur- 
rences m  recent  Chinese  history— the  Boxer  uprising  and  the  fall  of  the 
Manchu  Dynasty,  followed  by  the  establishment  of  the  Republic  of 
Chma—werc  largely  precipitated  by  the  radway  concessions  and 
loans. 

BAILWAY  MAP  OF  CHINA. 

Opposite  this  page  is  a  map  of  the  railways  of  China,  showing 
tlieu*  relation  to  other  systems.    This  appeared  in  the  Far  Eastern 


IHi 


42" 


KATLWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


Review  for  Februarv,  1919,  and  therefore  presents  a  tlioroughly 
up-to-date  view  of  the  situation  with  respect  to  the  lines  actually 
in  operation/ 

CLASSIFICATION  OF  IDOSTING  UNES. 

The  total  railway  mileage  of  all  classes  of  lines  in  all  parts  of  China 
at  present  is  slightly  more  than  6,500  miles.  This  does  not  include 
street  railways  or  tramways,  which  will  be  referred  to  later.  These 
railways  can'b©  divided  into  two  general  classes — first,  loan-built  rail- 
WB^js  owned  or  controlled  by  the  Chinese;  second,  " concessioned " 
or  foreign  railways  that  have  been  built  with  foreign  capital  and  are 
now  subject  to  foreign  control  and  operation. 

The  CJhinese  railways  can  again  be  divided  into  four  groups,  as 
follows:  First,  the  Chinese  Government  railways,  under  the  direc- 
tion of  the  Ministry  of  Communications;  second,  private  (stock-owned) 
railways;  third,  provincial  railways;  and  fourth,  industrial  railways, 
usually  owned  by  the  industries  served.  The  foreign  railways  were 
all  built  for  strategic  or  political  reasons,  and  at  the  time  of  their 
construction  their  commercial  utility  was  a  matter  of  secondary 
importance.  Both  the  South  Manchuria  and  Shantung  railways 
have  assumed  in  recent  years  much  importance  commercially;  this  is 
also  true  of  the  Chinese  Eastern  Railway  and  will  be  increasingly  so 
regardless  of  what  the  developments  may  be  in  Russia  proper. 

Following  is  a  tabulation  of  all  the  Chinese  railways,  following  the 
above  classification.  This  table  shows  the  English  name,  the  gener- 
ally used  Chinese  name,  the  miles  of  line,  the  gauee  of  the  track,  the 
source  of  th©  capital,  and  the  Provinces  in  which  the  railways  are 
located.  A  special  effort  was  made  to  include  practically  all  the 
commercial  railways  in  China.  The  mileage  given  in  most  cases  was 
taken  from  the  annual  reports  for  the  raUways  themselves  or  from 
data  obtained  from  the  Ministry  of  Communications,  but  in  a  few 
instances  the  mileage  shown  has  been  approximated.  At  present 
28  miles  of  Hne  of  2-foot  5-inch  gauge  are  being  constructed  in 
Yunnan  to  connect  with  the  French  Yunnan  line  at  Pechechi,  and  a 
further  extension  of  this  line,  for  a  distance  of  about  45  miles,  is 
contemplated.  This  line  is  being  built  to  develop  tin  mines  at 
Kotcheou.  _  

OEOUP  NO.  1:  CHINESE  GOVERNMENT  RAILWAYS. 


Sagbiiii.  umm  «f  railway. 


:P®MBg-Makdcn 

'FiHiig-Siii'fiWii 

Ticntsin-Pulow 


Piklng-Hankow 

StoMi 

Taatow-CMiiRhua 

Kalteng-Hman 


Bhanghai-Naiiking . . 

Sliaoghai  -  Hangchow  - 
Niiigpo. 


CMnese  name  of 
railway. 


Ching-Feig,- 

KiM-Sui 

Tsin-Fu 


Kin-Han 

Ch®ng-Tai 

Tao-CMng 

Plen- Lo  and 
LuBg-Hai. 

Hu-Ning 

Hu-Hang-Yung... 


Miles 
oOlne. 


GOO 

mam 

688 


814 
151 

m 

Mi 

203 

178 


Cauge. 


Ft.   In. 
4       8| 


4 

4 


*  ''if 

Meter. 
Ft.   In. 

4       81 


4 
4 


Source  ol  capital. 


Anglo-Chinese 

Anglo-German.... 

Franco-British.... 

Franco-Belgian.... 

Anglo-Chinese 

Franco- Belgian.... 

Anglo-Chinese. 

Anglo-Chinese. 


rrovlnces in  which 
railway  is  located. 


Chihli  and  Sheng- 

king. 
Chihli  and  Shansi. 
Chihli,  Shantung. 

Ktangsu,       and 

Anhwei. 
Chihli,  Honan,  and 

Hu[>eh. 
Chihli  and  Shansi. 

Honan. 

Honan  and  Kiang- 

su. 
Kiangsu. 
.   Kiangsu  and  Ch©- 

kiang. 


I  This  man  was  inserted  hy  the  Bureau  of  Foreign 
B.hea  notes  an  inaccunwy  with  respect  to  the  Omur 
.line  but  is  conneoted  witli  it  by  a  braucti. 


and  Domestic  Commerce.    Trade  Commissioner 
Kailway.    Blagovyestchensk  is  not  on  the  maiu 


v> 


u 

m 


u 


CI 


O 


CHINA. 

GROUP  NO.  1:  CHINESE  GOVERNMENT  RArLWAYS-Continned. 


43 


English  name  of  railway. 


Canton-Hankow. 


Chinese  name  of 
railway. 


Miles 
of  line. 


Canton-Samshui 

Canton-Kowloon 

Changchow-Amoy...  . 


Kirm-(  hangchun 

Ssupingkai-Chengchiatun 


Total  Group  1. 


Yueh-Haa. 


Kwan?-Sam 

Chui-Kuang 

Chang-Hsia..... 


Chi-Chang. 


269 

30 
89 
20 


Gauge. 


Ft.    In. 

4        8J 


3,773 
80 
52 


3,905 


4 
4 


Si 
8^ 


Source  of  capital. 


Four  Nations  (Hu 
kuang) 


Provinces  in  which 
railway  is  located. 


Chinese Kwant^tung. 


Anglo-Chinese 

Chinese 


Hupeh,   Hunan, 
^  and  Kiangsu. 


4 
4 


8i 
8| 


Sino-Japanese. 
Japanese 


Kwangtung. 
Fukien. 


Klrin  (Manchuria). 
Kirin  (Manchuria). 


GROUP  NO.  2:  CHINESE  PRIVATE  (STOCK-OWNED)  RAILWAYS. 


Sunning 

Kwangtung-Yueh-Han 

Railway  Co.  (Ltd.) 
Swatow-Chaochow 


Total  Group  2. 


Hsin-Ning... 
Yueh-Han... 


Chao-Shan . 


fi7 
140 

27 


234 


Ft.  In. 

4    8i 

4    SJ 

4    8i 


Cliinese 

Chinese 

Sino-Japanese 


Kwangtung. 
Kwangtung. 

Kwangtung. 


GROUP  NO.  3:  CHINESE  PROVINCIAL  RAILWAYS. 


Kiangsi.. 
Tsitsihar. 


Nanking  City  Railway. 
Total  Group  3..., 


Nan-Shan. 
Chao-Shan . 


87 
17 

8 


112 


Ft.  In. 
4  S.J 
Meter. 

Ft.  In. 
4    8J 


Sino-Japanese 

Chinese.. 


Chinese. 


Kiangsu. 
Heilungkianf 

( Manchuria). 
Kiangsu. 


GROUP  NO.  4:  CHINESE  INDUSTRIAL  RAILWAYS. 


Taveh 

17 
6 

27 

Ft.  In. 
2    0 
4    81 

4    SJ 

Sino-Japanese 

Anglo-Chinese 

Chinese 

Kailan  Mining  Adminis- 

Hupeh. 
Chihli. 

Shantung. 

tration. 
Tai-Tsao 

Tai-Tsao 

Total  Group  4 

50 

1 

GROUP  NO.  5:  "CONCESSIONED"  (FOREIGN)  RAILWAYS. 


Chinese  Eastern 

Tung-Ching 

Nanmani 

1,078 

692 

277 

*287 

22 

Ft.  In. 
5    0 

4    8J 

4    Si 

Meter. 

4    8i 

Russian 

JananRi^ 

South  Manchuria 

KirinandHeilung- 
kiang  (all in  Man- 
churia). 

Shengking  and 
Kirin  (all  x  n 
Manchuria). 

Shantung. 

Yunnan 
Kwangtung. 

Shantung 

Yuiman 

Santo>    (Chlao- 

Chi). 
Tien-Yueh 

Chiu-Kuang 

Sino  Japanese 

Canton-Kowloon 

British .• 

Total  Group  5 

2,356 

>  Japanese  names. 

«  Does  not  include  the  24S  miles  of  tiiis  line  in  French  Indo-Chiaa. 


f 


'lAttWAY  MATERIALS,  1Q,U'IPMBHT,  AND  SUFPLIBS, 

a  0  U  JM..  JulJiL  ll  IT  • 


CHIKA. 


HUKUANQ  BAILWAY8. 


45 


miles 

of 
line. 

MIlei:  of  line  of  yarions  gwigei. 

Omips. 

,5  feet 
{Eussi,au). 

4  feet  81 

indi'OS 

(standard). 

3  feet  3.37 

Indies 
(meter). 

2  feet. 

Group  No.  1 :  Chineaw:  (I'Overttmenl  railways 

Croiip  No.  2:  Chinese  private  railways, 

CJroiip  No.  3:  Cliiiiese  proTtncIal  railways,, , - . . 

G  roup  No.  4:  Chinese  Industrial  railways 

Tola!  dilnese  railways,  Groaps  N  as.  1 , 2, 3, 

and  4 , 

Croup  No.  5:  Foreipi  rail irays. 

3,,fMIJS 

234 

112 

50 

3,754 
234 

m 

33 

151 

"if 

17 

4,,301 ,...,. 

2,356             l,©78 

4,116 
Wl 

168 
287 

17 

Total  all  railways  In,  'CWna 

6,657             1,,078 

5,107 

455 

17 

GAUGIL 


This  seems  an  opportune  p,Iacc  to  call  attention  to  tlie  small 
amo'imt  of  ,railway  of  other  than  4  feet  Si  inches  gauge.  The 
latter  m,ay  well  he  termed  the  standard  gauge  of  China,  p.articiilarly 
as  regards  the  Chinese  Government  Railways.  Only  168  m,iles  out 
of  a  total  of  4,251  miles  of  commercial  railways  (foreign  and  indus- 
trial railways  not  included)^  or  only  about  4  per  cent,  is  of  other 
than  the  standard  gauge;  th„,i,s  168  miles  is  all  meter  gauge,  and  most 
of  it  was  huilt  with  the  mistaken  idea  of  building  a  cheap  line. 
This  fortunate  result  could  hardly  have  been  expected  in -view  of 
■the  fact  that  the  lines  were  bui,rt  by  engineers  of  m,imy  d,ifFerent 
,Eationalities  mad  with  different  ,kijMl8  of  materials  ^and  equipment. 

PIOPOBID  NEW  LINIS,, 

The  writer's  investigation  did  ,not  contemplate  ,aii  attempt  to 
analyze  the  j,)roposals  for  now  ,Ene8,  but  it  seems  proper  at  „,this 
point  to  outline  briefly  the  most  important  projects  that  are  in  course 
of  construction  or  for  which  fai.rly  definit*^  agi-eements  have  been 
made,  Tfa,e  most  important  of  these  .are  the  Flukuang  Railways 
(Four  Nations  ,Loan) ,  the  Pukow-Sinyang  Railway  (Chinese  Central 
Rai,lway3,  Ltd.,  Briti,sh),,,  the  Shasi-Shin^gyifu  Railway  (Pauling  & 
Co.,  Ltd,.,  Bri,tish),  and  the  Sietes-CJarey  (American)  projects,  as  well 


of  the  first  four,  and  the  last  two  will  be  referred  to  later  in  connec- 
tion with  the  existing  lines.  There  are  a  great  many  other  projects, 
but  ,most  of  them  have  had  oidy  paper  consideration  or  reconnois- 

sance  at  the  m,ost.  To  give  any  considerable  number  of  these  even 
passing  mention  would  take  a  .great  am,ount  of  space  and  would  be 
iiuidvisable  for  the  rea,son  that  very  few  of  these  projects  are  likely 
to  be  carried  out  without  first  being  considerably  modified.  The 
extensions  of  the  Ki,rin-Changchun  and  the  Ssupingkai-Chengchiatun 
lines  will  be  ,menti,on,ed  in  connection  with  Manchuria  and  the  South 
,Manchu,ria  Railway  (Japanese),  by  which  they  are  actually  con- 
trolled, although  nominally  Chinese  Government  Railways. 


These  proposed  railways  consist  of  two  trunk  Iineg™^ne  between 
Oanton  and  Hankow  and  the  other  between  Hankow  and  Chengtu. 
*he  capital  of  the  Province  of  Szechwan. 

J  if  £a^nton-Hankow  line  and  branches  total  about  685  miles,  of 
wHich  269  miles  on  the  Hankow  end  is  now  practicaJly  completed. 
Vn  tHe  south  end  140  mdes  is  completed  and  is  now  beincr  operated 
by  a  private  company,  but  on  the  completion  of  the  rest  of'this  trunk 
line  It  will  be  taken  over  by  the  Ministry  of  Communications  This 
leaves  about  250  miles  to  be  finished.  This  is  considered  by  far  the 
most  important  raOway  in  China  to  be  completed.  It  will  connect 
the  thickly  populated  part  of  South  China  with  Peking  and  Hankow 
and  the  other  parts  of  Central  and  North  China.  No  tloubt,  as  soon 
as  conditions  warrant,  steps  will  be  taken  to  secure  further  loans  for 
the  completion  of  the  work.  The  witer  was  informed  that  location 
surveys  have  been  practically  completed  for  the  remaining  parts  of 
the  line,  and  this  should  enable  more  accurate  estimates  to  be  made 
on  the  cost  than  has  been  the  rule  with  many  of  the  other  Hnes. 

Ihe  Hankow-Szechwan  hne  totals  about  800  miles.     No  pai't  of 

workZa  wK^^^  very  little  effective  constraction 

work  lias  yet  been  done,  for  the  reason  that  the  portion  near  Ichanff 
par%  completed  by  the  provincial  authorities  before  the  taking  ove? 
to  J^M^l  iL    f  wf'^^^  i  C«T^"^ii<^ations  has  been  abandoned 
Ann^i!^fv  r^^  ^^^^  ^^^^^'^^  be  secured  by  the  change  of  route. 

and^Sv^r^i^^*''^  ^  ''''^^  ""^  f^  ^"^^  Hukuang  Loan  Agr<^ement 
and  several  subsequent  notes  under  date  of  March  1,  1913.  March  3 

inter'esTi^tfe'^^^^^^^^  'f'  ''"f-  /his  agreement  may  be  of  particul^ 
interest  in  the  event  of  negotiations  for  further  funds,  in  view  of  the 

fof thetiiildwl^f Jfio^^^  and  American  funds  have  been  utilized 
tr«lJv  .arniw^/^  f  ?  "^^  i  ^^^  Canton-Hankow  line  now  prac- 
tically completed  and  m  view  of  the  controversy  that  arose  reffardin^ 
the  awarding  of  some  of  the  business  in  this  connection.      '^^*^'*"^ 

PUKOW-SINYANG  BAILWAY. 

TTiis  proposed  line  is  to  connect  with  the  Tientsin-Pukow  line  at 
Wui,  a  short  distance  north  of  Pukow,  using  the  latter  line's  Pukow 
termmds,  and  is  to  extend  west  about  350  nScs  through  the  Propel 
of  Anhwei  and  Honan,  connecting  with  the  Peking-Hankow  Une^ 
Sinyangchow,  about  135  miles  north  of  Hankow 

.h„  ffnl^'t^''"'^.*^^*""''"*  ^""^  ^^  ""e  was  "signed  in  1899,  but 
the  final  agreement  was  not  actuaUy  executed  by  the  MinistiTr  of 

bvX'Srr""  t"  ^T^T'^'^''  }A\  Tt^  agreement  wrs&ed 
by  the  Lhm^e  CentraJ  Railway  (Ltd.)  as  a  purely  British  under- 
taking providmg  for  the  appointment  of  BritL  engine"^  and  the 
use  ofBntish  materials  an/equipment,  but  it  is  claimed  that  a  con! 

fiTandsTCn'lf  «^  *^«,«?««^  «f  the  company  Wpsed  Zo 
ly.Lz^  t*^?^  *'^°*  and  Belgians,  who  will  thus  be  entitled  to  their 
share  of  the  profit  of  this  enterprise.  The  terms  of  this  agreement 
b^rna^'*%'  "^  ^^,  Tientsin-Pu^ow  conditions  referred  tTlater  as 
ta^.rJT'^^^  ^'■°™  ^^  ^'^^^  standpoint  than  the  rXay 

ac^PoSTr^  ""^  ■  ^  ^^''^'T  *°  t'^'^t  t™«  The  Tientsin-Pukow 
agreement  is  shown  m  Appendix  6. 

conmi^fewl^^  ^1°'"'  ^\^°  ^^"^  """"^  amortization  was  to  hare 
commenced  with  the  eleventh  year  from  the  date  of  the  loan,  Janu- 


MILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 

My  13,  1908,  but  on  accoimt  of  the  ddt^y  occasioned  by  tbe  war 
tins  will  hardlT  apply.  Yery  little  progress  has  been  made  in  con- 
nection with  the  actual  construction  of  thia  line,  but  it  is  believed 

to  be  one  of  the  projocte  that  will,  be  taken  in  hand  as^  soon  as  funds 

can  'be  secured  mar  the  war. 

8M'A8I-8:HIN<1YIFU  RMLWAT. 

Thislne  is  to  conn^ect  Shasi  on  the  Yangtze  River  in  the  Province 
of  Hupeh,  ftbout  200  miles  above  Hankow,  with  Shingyifu  in  the 
Province  of  Kweichow,  a  distance  of  about  655  miles.  A  branch  is 
to  connect  Changtehfu  on  this  line  with  Changsha,  about  105  miles 
distant,  where  it  would  connect  with  the  Canton-Hankow  Railway. 
This  loan  iigreement  was  substituted,  with  little  modification,  for  the 
Canton-ChingkunE  agreement  made  by  the  Chinese  National  Railway 
Corporation,  of  which  Dr.  Sun  Yat  Sen  was  director  general  and  Mr. 
George  Bronson  Rea  technical  secretary.  This  loan  agreement  ia 
with  Pauling  &  Co.  (Ltd.)  (British),  who  are  to  carry  out  the  con- 
struction on  a  b«is  of  cost  plus  a  percentage  for  their  services  and 
proit.  The  Government,  after  the  dissolution  of  the  Chinese  National 
Railway  Cornoration,  refused  to  recognisMj  the  validity  of  any  agree- 
ment entered  into  by  Dr.  Sun,  but  realizing  the  advantage  of  thia 
form  of  agr^eement,  it  proceeded  to  negotiate  another  contract  with 
the  same  firm  for  the  construction  of  what  is  considered  the  more 
import^ant  line  from  Shasi  to  Shingyifu.  This  last  agreement  was 
signed  by  the  Ministry  of  Communications  in  July,  1914.  The  loan 
is  to  ran  40  years.  There  are  many  points  in  this  arrangement  that 
are  considered  to  be  of  relatively  great  advantage  to  the  Chinese 
Government  as  compared  with  any  previous  form  of  railway  loan 
Hgreement.  It  is  probable  that  the  Ministry  of  Communications  will 
contend,  so  far  as  practicable,  for  these  general  terms  in  all  future 
agreements.    A  copy  of  thk  agreement  is.  shown  in  Appendix  No.  7. 

BIEMa.-CA,l«.Y  'PBOJECTS.. 

The  Siems-Carey  Co.  is  an  American  corporation  that  has  entered 
the  field  in  China  in  recent  years  and  that  has  a  preliminary  agree- 
ment for  financing  and  constructing  several  hundred  miles  of  rail- 
ways for  the  Ministry  of  Communications.    There  are  a  number  of 

lines  for  which  surveys  and  field  studies  of  the  rout«  are  being  made, 
and  from  these  data  estimates  and  conclusions  are  being  arrived  at 
regarding  the  cost  and  advisabihty  of  buUding  the  several  Hnes 
under  consideration.     Under  the  circumstances,  their  construction  is 

certainly  very  deeirable,  but  a  most  serious  difficulty  has  been  en- 
countered in  the  objections  raised  bj  persons  who  assert  that  the 

rights  of  their  concessions  .are  being  mvaded. 

BMLWAY  ACa:llBM..IEffn. 

RailwOT  agreements  in  China  can  bo  divided  into  two  distinct 

classes—first,  railwav  concessions,  which  are  really  not  agreements 
in  a  strict  sense,  and  second,  the  class  that  can  fairly  be  called  rail- 
way loan  agreements.  It  is  well  to  understand  that  a  railway  loan 
in  China  is  not  the  usual  commercial  transaction  that  it  is  in  most 

other  parts  of  the  world,  particularly  in  the  United  States  or  Canada, 


CHINA. 


47 


but  is  in  fact  apolitical  i&sue  between  two  or  more  nations   of  whirh 
China  IS  one  of  the.  principals.  canons,  oi  wnicti 

As  stated  previously  it  was  thought  that  it  would  not  be  necessarv 
SaXon'railw^'"'  ^i^f  ^ Weements  in  prepari^  thl  m"no^ 
Sndl  fW^^^  ^^^"^'  ^"*  ^  brief  study  led  to  the 

conclusion  that  this  would  be  a  necessary  or  at  least  a  votv  desirable 

Lt'madf^^^^^^^  ^^^^^  conclusirsT^d  su^^^^ 

SssTd  and  w^^H  J  !i  Jl'^l^T^^  agreemente   of  China  have  leen 
aiscussed  and  wiitten  about  to  a  considerable  extent,  but  this  an- 
pears  to  have  been  done  in  most  cases  from  eitherthe  poh^^^^^^ 
the  financial  viewpoint,  a,  is  very  natural,  since  tLrwWframed 
so  large  y  from  those  standpomts.     The  WiterV  studT  Wpv.^^^ 

:z^:L'rz:tf  ^'^^^^^f  ^^^  -gmTef ^onfSd  wirh's 

construction,  mamtenance,  and  operation  of  these  line^  nnH  thl 
Cthu'J'^T''^'  ^q"'P°>«?t>  aSd  supplies  to  the  bS  ^dv^ntat 

dovobnmrt'n  r„ffi"r  ^^^  ^"'"'^  4^""^"^  considered  wLtKe 
and  Z  n1^1/i  ®/  }.^tween  the  several  railways  and  the  grouping 
and  consolidating  of  the  management  of  the  various  linJ  in  thS 
Sr  eraTr^""^  airai^ement.  ^This  should  he  permisSe    .i^ce 

atSiran^^rrt  S"!*  *^^  '^^"-^^^''*^-  of  thtrl^^L^; 
anl^th^lt?^  ^^^  ""y'^T  features  of  both  classes  of  arrangements 

r^JL^b  e"'eZdt?n:  IfZ  ^'"^  "^^  StL^gT 'ch"in*a 
Toft^^^ T^^*  ^  o^taS^^tS^n^as^-ciinr ?Sbes°U^? 

of  r£^  sUn^tion  '^^u"^  """^  *°  '"•'''•^  ^^t^'^^  «^P^  ^  the  deSment 
OI  tnis  situation.    However,  copies  have  been  added  of  thp  TT„Wo„„ 

ttVlurZV£  Sie^^  /-<-rP-tationX'tt*reaZ™thaf 

which  iS^'inte^nrfb^fflT'S^  *Theri^- "T  ^ 
coDv  of  fhft  <=lQiini,i,,i.*.;  nu        Y v  "^^^'^-.^v,  prcaent.     Iheie  is  also  a 

s^ndn J  the  &^/^f  ^f  |- '''^t""  ^"'^^^^  agreement,  as  repre- 
wUh  tL  liLrbTiL  S^^ilf  L  M  ""^^P*"^^-  ?.g>-e«ment  in  connection 
will    fn,  JIT        ^.     .\  ■"  Manchuria  with  Japanese  loaa^  which 

Sfniri?LC;*Vsfe^-^'  '^  *^''"**^'  ^^  ^'''  '^^  *^«  ^^ 
nof  eveSj  ^MW  T^^  ^?^°^  *"  ^^^  nmnerous  agreements- 

c  r4;f  thrift  l^l^^i^^\£n^ 

IhlT/^'^'lr  "nd  apeemente  with  and  c^ncemin'  China  coT 
eS^JwpTllr  ?  Ta  M  T  '"''  ^  '^'''  indusive:"  und'er  the 
legatSfn  PeWn/    Tbt  S'^'Y,'-^^'"*^/**^^      t^«  American 

CHINESE   EA8TEBN  BAILWAT  AaREEMBNT. 

firi^^i^f "*'''' -^  contains  translations  of  document;  relatinc'  to  fhn 
fii^t  conc^ion  (and  one  of  the  most  important)  for^d  fro^  ChSl 


>i 


\\ 


,IIA,ILWAY  MATERIALS.,  EQUIPMENT,  AND  SUPPLIES. 

during  tlie  "  Battle  for  ConcessioBs."  'The  first  document  (seep.  274) 
B  the  agreement  for  the  constraction  and  operation  of  the  Chinese 

Eastern  Railway  from,  Pojjanichnaya  (Smfenho,  Chinese  name) 
on  the  eastern  border  to  Manchuria  (Manchouli)  on  the  western 
border  of  Manchuria,  now  forming  part  of  the  ■Trans-Siberian  route. 

The  original  of  this  agreement  k  in  Chinese  and  French.  The 
translation  in  the  Appendix  is  from  the  French  text  and  h  the  same 
as  will  appear  in  Mr.  MacMurray's  compilation.  "Tlie  text  shown 
by  Mr.  Kent  in  his  "Railway  Enteri>rise'in  China*'  is  a  translation 
from  the  Chines^e.  taken  fiom  Rockhill's  "Treaties  and  conventions 
entered  into  by  China  between  1894  and  1901"  Wliile  these  trans- 
lation.? differ  in  some  details  the  substance  is  practically  the  same, 
but  it  is  probable  that  the  Fieoch  text  h  the  one  that  guided  the 
R/iissians  m  their  handling  of  this  situation.  The  seconcT  document 
i:n  Appendix  2  (see  p.  276)  is  a  translation  of  the  supplemental  agi-ee- 
ment  for  the  construction  and  operation  of  the  South  Manchurian 
Branch  (then  so-called)  from  Harbin  to  Port  Arthur.  This  is  the 
tianslation  from,  the  Chineso  text  .as  shown  by  Rockhill's  "Treaties." 
The  name  of  the  Russo-Chinase  Bank  hw  since  been  changed  to  the 
Russo-Asiatic  Bank. 

The  concluding  section  of  Appendix  2  (s'ee  p.  278)  shows  the  "Stat- 
utes of  the  Chinese  Eastern  Railway  Co./'  which  aie  given  in  order 
to  show  the  scope  of  the  powers  .granted  to  the  i  ailway  company  to 
develop  and  operate  the  reaourc«  of  this  territory  in  addition  to 
the  construction  and  operation  of  a  railway.  Tliis  text  is  taken 
from  Kent's  "liailway  Enterprise  in  China."  The  writer  was 
unid)le  to  identify  the  text  from,  which  this  translation  was  made, 
but  in  view  of  the  accuracy  of  all  of  Mi .  Kent's  data,  no  doubt  is 
entertained  with  respect  to  its  correctness. 

^  Reference  to  the  taking  over  of  the  southern  part  of  the  Soutn 
Manchurian  Branch  (or  wnat  is  now  the  South  Manchuria  Railway 
Co.'s  line)  from.  Russia  by  Japan  as  a  result  of  the  Russo- Japan eao 
War  and  the  extending  of  this  concft«ion.  to  a  total  of  99  years  will, 
be  made  later  in  connection  with  the  South  Manchuria  Railway  Co. 

FBK,I,NO-HAHKOW  a,A,i;LWAY  AOBBKMENT. 

Tn  this  ^  case  it  may  b©  considered  that  the  arrangem,ent  was  first 
a  ^  concision  and  at  a  later  date  wm  changed  to  a  loan  agi-eement. 
The  first  section  of  Append,ix  3  (see  p.  285)  .is  the  translation  from  tho 
French  text^  as  shO'wn  by  Rockhill's  "Treaties."  The  second  section 
has  to  do  with  a  8upplem,entary  loan,.  This  is  a.  translation  from  the 
French  text  as  printed  in  Mr;.  C.  C.  Wang's  "R,ailway  Loan  ,Agi-ee- 
m,enis." 

The  history  of  these  negotiations  is  lo,ng  and  complicated  but  the 
outstanding  points  are  as  follows:  The  project  was  £T=it  undertaken 
bj  Grand  Councilor  Chang  and  Mi-.  Sheng,  both  previously  men- 
tioned, who  endeavored  to  raise  two-tliii-ds  of  the  necessary  capital 
among  the  Chinese.  When  this  failed  and  when  negotiations  were 
in  progress  with  the  Carey-Washburn  group  of  American  interests, 
the  Belgians  appeared  and  their  teims  seemed  so  attractive  that 
Director  General  Sheng  proceeded  to  close  on  what,  at  tiiat  tune,  he 
regarded  as  the  best  ternas.  Wlien  the  details  came  to  be  settled, 
however,  many  of  the  apparently  good  terms  had  to  be  modified. 
It  is  probable  thai  this  is  one  o!  the  loans  in  which  there  will  he 


CHINA. 


49 


tTS?lnnrf!l!n?n/  '^  ^^l^  ovcrcomiug  all  the   res  trie  tion.s, 
•    tlioug*!  a  good  deal  of  progiess  has  ah-eady  been  made  to  that  end. 

PEKmO-NEWCHWANG  RAILWAY  AGREEMENT. 

If  V'af  7h^}tt  ^^^  v-^l^*ir  agreement  of  any  magnitude  negotiated. 
1-nf n  1!  L  T  '#  7^'^^  ^^^  Chinese  gave  all  the  actual  management 
f9o}\'  ^"""^  ""^  foreigners      The  fii^t  section  of  Appendix  4  (see 

VJ}r!nArF  ""•  f^  P/^H^^^^ry  agreement  of  June  7,  1898,  and 
the  second  section  is  the  final  agreement  of  October  10  1898— both 
taken  from  Kent's  -Railway  Enterprise  in  China.''    tL  Sreement 

^nlhZiflTT}^^^^^^  &  ^r^:^  ^  encroachi^  on  Its 

sphere  of  influence    m  Southern  Manchuria  and  constituting  what 
the  Russians  called  ''foreim  control  of  the  fine. "  ^ 

men^fZTf^'lZT'^T  if  ^¥^^.^  ^^^ ^^^^^^ ^^^^h^^l  ^'^^  agree- 
ment that  the  h  tter  shouklconfine  its  activities  to  Manchuria  and 
territory  north  of  the  Great  Wall  and  England  to  the  YangtzrVallev 

w'  wlr  \^'  "^t^"  ^"1^^^^  ^^^^^  ^^^^^^^«ff  and  sfr  Charles 
tec.S''''^T{^T*''*''  ^^''  agreement  and  the  success  of  the 
Peking-Mukden  Railway  gave  the  British  an  opportunity,  wh^ch 

CANTON-KOWLOON   BAILWAT  AOREEMEKT. 

n,.'!l!,j"w  ft^  '°  *''*  ''''^"Se  of  conditions  for  railway  loans  was 
Ko?i^^Iw.^TT*  ^°'  '^'  Chinese  portion  of  tie  CantoS! 
STd  2qfl^S  ™  ^f /'gned  March  7,  1907.  Appendix  5 
"TW-ani;  "     TnT^„VP^  ?^  ^^  agreement,  as  given  in*Rockhill'a 

in  recenTveaJ  th^»«^'"'f  ??■  °^  "'^''^'^^  \*^°  a^eements  in  China 
in  recent  years  the  terms  of  this  agreement  have  been  referred  tn  «« 

typical  of  the  conditions  claimed  ty  British  interests  to  c^titute 

the  best  arrangement  for  the  constriction  of  railways  1^0^^^?*^ 

monejr  raised  on  foreign  loans.    This  agreement  provide,  that  the 

administration  and  control  of  the  fundi  shall  be  under  a  Chinese 

XlltfdS'tKr"*'?'*  'y  '^f  viceroy  and  that  ther^  shaU  be 
tesociated  with  the  managing  director  a  British  chief  en<'ineer  and  a 

atinn^it'^  accountant  nominated  by  the  British  &  CwC  Corpor! 

the  effect  oTCi?f  ^^  *^'  ^T^^"  A^^^^  '^^^  ^^  ^een  said  aCt 
tlie  ettects  of  thjs  arrangement,  but  it  has  worked  out  to  what  mitrht 

be  caUed  a  dual  controf,  with  the  British  chief  en^neer  Tnd  Britth 
chief  accountant  in  techmcal  control  of  the  adminittration. 

HENT8lN-PnK0W   BAILWAY  AQKEEMENT. 

The  next  advance  in  the  development  of  the  loan  conditions  was 

Tht  '.Tl^  "^  l^^  Tientsin-Pukow  agreement  Janu^y  13    190^ 

TArma""  T°^  r"  r'^P-^  ^'^'^^  ^"^"i  ««  <-»!«  "Tientsin-Pukow 
Sn    wf  f  "f^  »  dJstmct  type  of  loan  agreement.    Appendix  I 

terms^of  thk  foan  tirl""  f "??  ^^  RocSnll's  "TreatiS."  The 
terms  ol  this  loan  were  more  to  China's  hking  than  the  conditions  of 
any  loan  made  up  to  that  time.  It  put  in  t£e  hands  of  the  Chinese 
director  general  control  of  funds  derived  from  the  loan  The  Britfsh 
106229''— 19 4 


H 


I 


i 


'If'  #*l 

oil 


lAItWA¥  MATEBIALS,  EQITIPMENT,  A¥D  SUPPLIES. 


and  German  cMef  eogio^eera  are  subordiQat©  to  the-maoagiii*'  director 
on  their  respective  sections.  There  is  no  provision  for  the'"  appoint- 
ment of  foreimi  accountants,  l>ii;t  the  agreement  does  properly  give 
the  loan  syndicate  the  right  to  examine  the  accounts.  It  permits 
the  purchase  of  materials  and  equipment  on  a  better  basis  for  China, 
which  succeeded  m  obtaining  those  more  favorable  conditions  by 
taking  advantaffe  of  the  competition  for  the  securing  of  the  loan. 
One  particular  leature^  of  Ms  loan  is  that  the  railway  itself  is  not 
mortgaged  m  collateral  security.  Another  important  point  is  that, 
111  case  of  default,  the  collection  of  the  mortgaged  revenue  is  to  bo 
administered  by  the  Chinese  Maritime  Customs. 

The  last  sliep  in  the  improvement  of  Oiincse  railway  loan  terms 
was  achieved  by  the  signi:ng  of  the  Shasi-Shingyifu  agreement,  winch 
has  become  generally  known  as  the  Pauling  ty|>e'  of  agreement.  The 
firet  section  of  Appendix,  7  (see' p.  312)  is  a  copy  of  the  final  agreement, 
and  the  second^  section  is  a  copy  of  a  supplemental  agreement. 

This  tjjm  of  ^agreement  is.  considered  as  extending  to  China  the 
most  favorable  terms  of  anv  that  has.  yet  been  signed.  Some  of  the 
important  features  are  as  follows:  The  work  is  to  be  constructed  at 
cost  plus  a  Dcrcentage  for  the  services  and  profit  of  the  contracting 
firm.  The  decision  as  to  the  location  of  the  line,  the  preparation  of 
plans  ^and  specifications,,  and  the  supervision  of  the  work  of  con- 


i:  T 7  .  "*»■•  '■'^'^^ , "!  °  •'«**"«**e;  •  J.  a^«5  mi  y  wr  is  w  cooperate  wi  i,,n 
a  ftrm  of  foreign  consulting  engineers  w^hose  representative  in  Clnna 
,1,8  to  be  a  ,Bn,tish  engineer,  who  during  the  co,nstruction  period  is  to  be 

called  engmeer-in-chief  of  co,n3truct,ion.  ,A  fi,rm  of  foreign  account- 
ants ,is  to  keep  the  accounts  of  the  loan,  subject  to  inspection  by 
.accountants  representing  the  Chinese  managing  director.  Specifi- 
cations a,nd  estimates  of  cost  must  be  approved  by  the  Chinese 

auth.orities  befo,re  the  work  of  cOtat,ruction  is  proceeded  with.  The 
managing  di,rector  calls.  ,f or  and  accepts,  tenders,  subject  to  the  approval 

of  the  engineer-m-chief  of  co,nstruction.  The  agreement  provides  for 
the  u.se  of  Cli,i,n:es©  standards  for  ro.adway,  track,  bridges,  and  equip- 
ment, when  such  standards  m.aj  be  adopted  by  the  Cfiinese  Govern- 
ment R.ailways,  and  also  provicfes.  for  the  'Use  of  the  unified  system  of 
C„..bin,.ese  Railway  accounts. 

The  loans  are  secured  on  the  ,railway  and  properties  in  connection 
theremith  and  .are  also  to  be  guaranteed  by  the  Oiinese  Government 
After  completion  the  property  is  to  continue  under  the  direction  of  a 
Cliinese  managing  director  and  the  engineer-in-cliief  shall  be  a  British 


subiect. 

, Thf  apccments  so  far  entered  into  by  the  Siems-C?arey  Railway  & 

Canal  Co.  (American)  conform,,  in  general,  to  the  above  type  of 

agreement. 

The  types  of  .agrecmenis  already  mentioned  am  intended  to  show 
the  general  classification  and  the  stop-by.-s.tep  development  of  this 
situation  m  China.  In  addition,  the  Hiikuang  agreement  will  now 
be  referred  to  on  account  of  the  probabilitv  of  further  loans  beinc 
undertaken  in  this  connection,  particularly  for  the  completion  of  the 


CHWA. 


Ox 


agreement  for  the  builcli';;^,';ft£ Sni^^^^ 

ctun  RXaXr/r^'*'  '?  ^l^T  l^^P^  ofThe'Lt  KiHn^anJ 
a  tmnd^i  nnL  *v  ''«•■««""««*'  I'"*  the  writer  was  unable  to  obtam 
to  prS  "greement  that  he  considered  sufficiently  reliable 

HUKUANO  EAIIWAYS  LOAN: 

of  tKukuaif  K«ilw»il"'*^^  *  "^^y  °^  *^«  °"^°«^  English  text 
oi  me  xiukuang  Kailways  loan  agreement,  as  well  as  cnnio-  nf  ti,„ 

mZSauZTl^tS'^-  r^'^'^'^''^'^  anfthe^^hl't 
frnv^^t  W„„  ®*^V}P^°^  ^^^"^  ^^  occasioned  considerable  coii- 

toXt^J;:'S^ht  A^xLlta^prtli^Xa^^^^^  ^T^T^t  ^ 

Srfrof  th^ra'raVf  stu  bT  "S'v  tenT  ^''''^''^-  ^'^1 
guaxaaty  that  the JildniiU  rn,aintreSni^;'^re1.  "  ^'^'"""^ 

of  the  S^ehwan-Hankow  Raifwa^^  thf  ^ericar^  ?h^  iX?/ 
Kweichowfu  section  of  the  Szechwan-Ha^o^line^o  The  Sni 
the  section  of  the  latter  railway  from  Kweichowfn  tA  fT,Pnft,!  n 
agreement  aH  the  available  British  and  iS^eS  fun^  bf  ™  K^ 
used  m  completing  the  constnipfinr.  «i  ti^v"!  l  •  '^^^^.  °^^ 
the  Canton JankowRXrytoChanJha     ^'*'^^'^^'«'»  «««t>«n  of 

SSUPIlfOKAI-CHENGCHIATUN  KAILWAY  AGllEEMBNT. 

metn£n  frl%t^  F^fr  f  ^^^Ssupingkai-Chengchiatun  agree- 
uieiii.,  taKen  irom  the  b  ar  Eastern  Review  for  Mav  IQl 7     Thm  ;JT 

translation  from  the  Chinese  text.    It  is Ttated ^i^L  l',. .k    •.  ^^ 
be  an  excellent  translation.  ''''  ^"""^  authority  to 

co?vi£t*n^^^^^^  1  the  agreements  mentioned  wiU  afford 

t^ouvincing  prool  of  the  need  of  action  (such  as  i<4  latAi-  aii««^.+ri  w 

remove  the  restrictions  that  impede  SiHrog^of  c4Zf™i  ^i 
and  Its  railways  in  particular.         """  P™g^^  ««  ^^una  in  general 


IV.  CHINBSE  GOVERNMENT  RAILWAVS. 


Tb©  taWe  beginiiing  on  page  42  shom^  the  existing  railways  that 
constitute  the  system  known  as  the  Chinese  Government  Railways, 
with  a  total  of  3,900  miles  of  line.  AM  these  railways  are  under  the 
control  of  the  Ministry  of  Comm,nnications  except  the  last  two,  which 
are  only  nominally  so;  the  actual  control  of  these  two  branch  lines 
is  now  to  a  great  extent  in  the  hands  of  the  Japanese,  and  they  prac- 
tically come  under  the  administration  of  the  South  Manchuria  Kail- 
way  Go.,  which  wil  be  referred  to  later  in  connection  with  the  Japa- 
nese activities  in  Manchuria. 

From  the  standpoint  of  markets  for  American  railway  materials 
and  equipment,  tne  CJhinese  Government  Railways  and  the  new 
lines,  extensions,  and  additions  that  wil  be  built  in  the  future  under 
the  direction  of  the  Ministry  of  Communications  constitute  a  more 
important  field  than  any  other  in  the  Far  East,  and  accordingly  they 
will  be  discussed  at  greater  length  than  any  of  the  o'l  ©•  railways 
covered  by  this^  report.  Upon  reference  to  the  railway  map  facing 
page  42,  it  will  be  noticed  that  the  lines  included  in  the  first  subtotM 
(in  the  table  on  p.  53)  radiate  from  Peking  and  Tientsin,  connection 
being  made  at  Nanking  by  ferry  across  the  Yangtze  River.  It  is 
.fuither  apparent  that,  by  the  use  of  a  ferry,  the  Canton-Hankow  lino 
can  be  connected  with  the  other  parts  of  the  system.  There  is  one 
small  line  about  20  miles  long — the  Changchow-Amoy  Railway — that 
has  no  connection  with  this  system  of  raiways;  the  writer  was  unable 
to  obtain  reMable  data  reg.arding  this  line. 

The  investment  assets,  construction  costs,  opera  tin?  results,  inter- 
est chaises,  and  surplus  earninp  of  these  railways  wOl  first  be  con- 
sidered;  then  the  status  of  the  Ministry  of  Communications  as  regards 
its  direction  of  the  financing,  construction,  maintenance,  and  opera- 
tion of  these  railways  will  be  taken  up;  and,  finally,  a  brief  account  will 
be  given  of  the  special  features  of  each  line.  These  points,  taken 
together,  will  form,  the  basis  of  the  suggestions,  and  recommendations 
beginning  on  page  243  of  this  report. 

At  this  point  it  seems  proper  to  state  that,  notwithstanding  the 
restrictions  of  the  railway  loan  agreements,  the  Chinese  Government, 
through  the  medium  of  the  Mimstry  of  Communications,  has  made 
steady  and  rather  surprising  progress  in  securing  control  and  unify- 
ing tlie  operation  of  tiiese  railways.  This  has  particularly  been  the 
caso  since  the  middle  of  the  year  191 1,  and  the  conclusion  seems  war- 
raoted  that  this  control  wil  be  gradually  extended  as  the  railway 
loans  are  amortized  in  the  course  .of  time.  This  situation  should  be 
given  thorou|?h  study  by  American  manufacturers  of  railway  mate- 
rials and  ec|uipment  in  their  efforts  to  secure  the  large  amount  of 
business  that  wil  be  awarded  in  the  building  of  the  new  lines  and  the 
extensions  and  additions  to  the  ejosting  lines. 

'03 


\jrX.XXXH  £tLm 


53 


INVESTMENT  ASSETS. 

The  first  of  the  following  tables  shows  the  total  investment  assets 
of  the  Chmese  Government  Railways,  with  the  exception  of  the  two 
branch  lines  (already  mentioned)  in  Manchuria  and  the  Changchow- 
Amoy  hne  in  Fukien.  The  investment  assets,  according  Ibo  the 
Lhinese  classification  on  the  general  balance  sheet,  include  cost  of 
road  and  equipment,  cost  of  other  physical  property,  and  cost  of 
nonphysical  assets. 

INVESTMENT  ASSETS  AND  INTEREST  CHARGES  OF  THE  CHINESE    GOVERNMENT 

RAILWAYS. 


Nam©  of  railway. 


Peking-Mukden 

Pekinp-Suiyuan 

Tientsin-Pukow 

Peking-Hankow 

Cheng-Tai 

Taokow-Chinghua 

Kaifeng-Honan 

Bhangliai-Nanking 

Shanghai- Hangchow-  Ning- 
po 


Date 

of 
data. 


Total 
invest- 
ment 
assets. 


Miles 

of 
line. 


Invest- 
ment 

assets 

per  mile 

of  line. 


Subtotal 

Chuehow-Pinghsiang 

Canton-Kowloon , 

Canton-Samshui , 


Total. 


1916 
1915 
1916 
1916 
1915 
1915 
1915 
1916 

1916 


1915 
1915 
1915 


dollars. 
60,467,577 
25,649,763 
99,803,208 
100,298,991 
23,559,212 
70281,141 
13,355,784 
30,484,417 

21,307,378 


382,207,469 

4,743,045 

16,708,406 

3,262,491 


406,741,411 


600 
267 
678 
814 
151 
95 
115 
203 

178 


3,101 

60 
89 
30 


3,280 


Mex. 
dollaTS. 
100,779 

98,067 
147,202 
121,217 
156,021 

76,614 
116,137 
150,170 

119,704 


For  year  1916— 


Interest  on 
funded 
debt.  . 


123,253 

79,051 
187,735 
108,750 


124,007 


Mcx. 
dollars. 
773,033 

"4'776,"267' 

2,320,917 
65'1,741 
380,000 
697,464 

1,318,358 

643,369 


Surplus 

of  net 

income. 


11,557,149 
'*'*76i,'747" 


12,253,896 


Mex. 

dfdlars. 

8,184,449 

1,380,448 

385,369 

10,770,381 

174,396 

""'22,'953' 
491,444 


DeOcit 

of  net 

income. 


Mex. 
dailurs. 


21,409,440 
51,775 

"*388,'i38" 


21,849,353 

1,048,085 


20,801,268 


261,076 


261,078 

"m',m 


1,(M8,085 


SUMMARY  OP  BALANCE  SHEETS. 


Items. 


ASSETS  OR  DEBIT  BAL- 
ANCES. 

Investment  assets: 
Cost    of   road   and 

equipment 

Cost  of  other  assets... 

Total 

Working  assets: 

stores 

Other  working  assets. 

Deferred  debit  items: 
Temporary  adv  ances 

to  Government 

Other  deferred  debits 


Peking- 
Mukden. 


Peking- 
Suiyuan. 


Mex. 

dollars, 

59,942,844 

624,733 


60,467,577 


Mex. 

dolktrt. 

25,557,601 

92, 162 


Tientsin-       Peking- 
Pukow.       Hankow. 


25,649,763 


Mex, 
dollars. 
99,803,208 


99,803,208 


3,930,186 
4,431,576 
1,300,630 


Total 

Accumulated  deficit . 
Gcaad  total.... 


9,662,392 


1,558,251 
2,149,098 


76,256 
1,268,825 
1,163,351 


2,508,432 


3,707,849 


1,437,079 


1,437,079 


Mex. 

dollars. 
97.807,196 
2,491,795 


Shanghai- 
Nanking. 


Mex. 

dollars. 

30,484,417 


Shanghai- 
Hang- 
chow- 

Ningpo. 


100,298,991 


2,357,966 

1,830,534 

856, 036 


6,044,536 


1,147,884 


3,953,081 

4,437,467 

720,880 


30,484,417 


911,481 

640, 444 

49,752 


Mex. 

dollars. 

121,307,376 


Total. 


Mex. 
dollars. 
334,902,642 
3,108,690 


21,307,376338,011,332 


I 


9,111,428 


73,837,318 


29,595,274 


1,147,884 


5,793,878 


111,789,506 


10,112,914 


10,112,914 


119,523,333 


1,601,677 


188, 172 
1,976,628 


2,164,800 
7,135,611 


41, 386,  .505 


l,565,937j  12,794,907 

493,7561  13,102,602 

82,8951    4,173,544 


2,142,588  30,071,053 


1,958,914 


1,958,914 
1,031,339 


1,746,423 
18,782,517 


20,528,940 
13,960,828 


26,440,217,402,572,153 


5jl 
"4 


RAILWAY  MATERIALS,  EQUIPMENT,  ANB  SUPPLIES. 
SIIXM1,KY  O'P  BALANCE  SHBETS-ContitittwI,. 


Items. 

Pekfaf- 
Miikden. 

Pckfng- 
,8uiyi:ian. 

Tiealain- 
Pukow. 

■Peking- 
Hankow. 

filianghai- 
Nanking.. 

SbanghaE- 
eang- 

chow- 

Ningpo. 

Total. 

.U*BIU:iIl:S  0«  CEEMT 
»ALA.MC'E:9. 

Capital  liabiljttes: 
I%r  m  a  nm  t  (i  o  v  era  - 

■tnent  i  iix-est  meots. . 
Otter  capital  liabili- 
ties.....  

Jfti. 

ioiivn. 

»,  903;,  398 

19,576,5M 

Mm. 

ioiiOTB. 

23,562,»7 

Ma. 
doUurs. 
3,  ,589, 350 

i5,M9,974 

Ma. 
Mtan. 
40,369,,3Bi: 

SS,4M,.« 

Ma. 
■dfdhn. 
,3,,  672, 671 

29,955,514 

Mex,           Mes. 
(folterff.        dollar  9. 
4,989,707100,086,739 

18,405,015  221,637,703 

TMal 

43,  m,  009;'  23, 562, 237     «,  839, 824 

98,819,964 

33,6M,185 

23, 39t.  722  321, 724,441 

W<wMn|t  liabilities: 

IjOaas. 

Otlier  liabilities,..-.. 

r 

Mi.,7»4! 

1 
l,,m,03l!      1,409,000 
«B,8»i      l.S12;« 

1,&8.172 
2S9',«7 

""'ioB,'o3i 

1 

3,465,937 
4,M9,849 

Total 

982,954 

1,675,«1 

l,93l.,»l      2,91.2,660 

447,  s  Id,        105,031 

,8,055,788 

.Defcrred  credit  items: 
Temporary  lidvancc's 
frcim  (3o  V  e  ni.m.e  lU. . . 
Otter  deferred,  credits 

1,«91,415; 

6,731,613;       921,334 

8,  MS,  1197 
2,372,634 

**s,*ii,*ii 

5,,M9,«7 
1,437,491 

2,006,728  17,862,927 
933,736  20,670,0M 

'Total 

8,,423,i»f       921,324 

11,018,331 

8, 283,  ail 

6,946, 57<t 

2,ftlO,4«  38,532,988 

Aofiiiiiii.Iatcd.  nriius: 

Additions  to  prop- 

ertj  Llirough.  sm- 

pins ...'" 

.Funded  debt  reliied 
t.hroiij»lisiirpiu.:s... 
Wtm  surpte,. , . , .. . 

11, 166, '657 
9,7«,«7»! 

1,998, 4iS5 
**i,"437,'77i 



7,239,678 
***2,*a67,'780 

363, 9S 

»,494,7W)' 

10,148,M» 
3,706,557 

Total 

CImad  total. , 

»,  951. 327' 

3,4M,ZI2.,. 9,S«7,4«j 

■363.,9£,l,i 

— — 1 , 

34,258,940 

78,,  837, 318." 

29,  ,595, 274 

111,789,506' 

ll9,523,33,3j' 

41, .386, 505!  26,440,217 

402,572,153 

AVERAO'.K  C0N8TBTCTI0N'  COST  PER  MILE  0.F  LINE,  .DlSTRraUTED  TO  ACCOUNTS. 
OF  SIX  TYPICAL  CHINESE  GOVEENMENT  RAILWAYS. 


Itema. 


I.     COiKSTmUCTIOK 
COUNTS. 


Jiilwi*' 


Cleaeral  oxpendituies. . . 
Pwliniijiary    expendi- 

||'  Mm  I'  Vllili  «  H  •  ii  W'  «K.  •>  «!  •  *  iW'  «.  in   ■,  fii  iH  i. 

Land. ....... 

.Formation  <g,rad,inii::: 

M-  lji|]..IllllS'«.  -m  m  m  *  *■  m  *  m  wm  *  •  *  m  m 

Bridge  work ... . . , . 

Line  protection 

Telegrai'th.    and    tele- 

pboiies 

Track ..,.,, 

6.:i«iial.s  and  ,swifc(ies .' ..' . 
Stations     and     oilier  , 

buildings 

Central  .nieehanicai 

works 

Sfwiai  .mccliaoical 

wor,li.a 

Jl  Jllilll.  «.  jK  •««•'•«>•*•«.  a  «,  a,  «,  .p,  ,„  ^ 

Eolling  ijtock. 

Maintcnante . . . . .... 

.DwItJi,  and.  wli»r?e« . . .. 
Flott,t.ing  equipment. . . . 

Total,  pwll....... 


Peking- 
Mukden. 


Met', 
doiims. 
1.0,099 

ti06 
2,283 
3,774 

I'b',  0O8 
295 

.3,74 

21.,  .tM 

1,457 

7,573 

3, 752 


;2il,186 
.263' 
'2M 
219 


■peking- 
Kalgan. 


H|,  '4llll 


.lift*. 
dollar  s. 
7,  ,897' 

564 
3,804. 
7,619 
3,il}9 
%U4 
67 

784 

M-M  m  ■lifiitiiWIIlJ' 

am 

7,3il 
1,»7 


159 

27,  SOS 

1,.S01 


Tientsin- 
Fukow. 


.Jftx 
tfollar<. 
15|tt5' 

l.,094 
5,  ,520 
o,  J  i  *> 

31,310 

330 

t,M 

39,182 

926 

9,  ,397 

1,789) 

'Tlf!iiii 

1,6>  ISO'  I 
3,749 
978 


Peklng- 
Uaiik.ow. 


Mit. 
iloite'i'S. 
13,872 

6* 
4, 1& 
7,  .184 

fm 

17,35t't 

0'5' 

445 

*J,  9.«4 
929 

6,867 

830 

SOS 

1, 207 

SO,  8,14 

.2,323 


Sli,an|!iiai- 
.Nai'ilcing. 


87,1,89      ,125,790       99,  W9 


.JlSfi. 
ioIkir$, 
11,760' 

14,699 

.10,254 

1,847 

331 

515 

35. »» 

'445 

12,506 

2,792 

'632 

■2;i,9H8 

f  O'lf  .1 

205  I 


Stiangbai- 


obow- 
:po. 


Met. 
dnUoTi, 
3,359 

54 
3, 1,30 
1,:266 

"'"6*«'4' 
8 

142 

8,745 

130 

1,529 


374 

S,  018 


All  Chinese  Cio V- 
ernment  Rail- 
ways. 


Avoragu 

cost  per 

juife. 


A3«I,  '6*16' 


28,,  4 19 


Met. 
doflas  s. 
12,080 

488 

4,906 

7,219 

498 

lOf  2.19 

55<j 

22,932 

887 

7,190 

1,585 

Its 

982 

l-s,  363' 

1,597 

438 

122 


For 
cent. 


12.28 

.50 
4.98 
7.32 

18. 48 
.20 

■  58 

23.26 

.90 

f  «  JSnOr 

1>81 

•  Is 

LOO 

18. 8*»' 

1.62 

.44 

.12 


CHINA. 


5'5 


AVERAGE  CONSTRUCTION  COST  PER  MILE  OF  LINE,  DISTRlBtTTED  TO  ACCOUNT'? 
OF  SIX  TYPICAL  CHINESE  GOVERNMENT  HAILWAYS-Continued. 


Items. 


Peking- 
Mukden. 


n.  FINANCIAL  ACCOUNTS, 

_  ^  Mex.         Ma. 

Interest    during    con-     itmar$.      dolUrs. 
struf  tion. 

Exchan.ee i-"."'.*Cl.*  .**!.' .'.'.' 14' 

Unclassified i 


Peking- 
Kalgan. 


Tientsin- 
Pukow. 


Total  part  II 


Total  parts  I  and 
II. . ; 

Deduct  recreipts  on  cap- 
ital account. 

Total  cost  of  road 

and  equipment. 


96,406 


96,406 


14 


87,203 


Mex. 

dofJars. 

20,161 

7 

3,174 


Foking- 
irankow. 


87,203 


23,342 


149, 132 

11.082 


Met. 
dollari. 
15,076 


Shanghai- 
Nanking. 


Mex. 

dollars. 

15,451 

909 

3,  227 


Shanghai- 
Hang- 
chow- 

N.iJigpo. 


33,381        19,587 


138,050 


132,460 
9,101 


123,359 


153,243 
3,163 


130,080 


Mex. 

dollirs. 
-12,184 
-  1.319 
29,633 


All  Chinese  Go V- 
ernmont  Rail- 
ways, 


Average  ■    p 
cost  per  '     '  *'' 
mile. 


Mex. 
d*>ilar». 

10, 2.'»3 

-'    '  177 

7.196 


cent. 


16,130        17,272 


44,549 


44,549 


115,847 


110,467    


98,575 


It  Will  be  noted  that  the  information  with  regard  to  investment 
assets  IS  shown  for  different  years.  That  for  the  year  1916  has  been 
taken  from  the  annual  reports  of  the  several  lines.  For  the  Peking- 
buiyuan  Ime  the  figures  have  been  taken  from  the  1915  annual  re- 
port. The  data  for  the  other  lines  have  been  taken  from  the  Ministry 
of  Oommumcations  consohdated  report  for  the  year  1915  This 
^J^t^A^TJr  ^*'"'>*°  *  considerable  extent,  approximated. 
baW« Tp«t«  nf  ^t  P?"«*d^g  tables  is  an  analysis  o'f  the  general 
anmX»T;^.^=  TK^  ^"^^"^  ^""^  T^""^  *^^  ^t^'  ^««  "^^e  to  obtain 
^^^^}  f^P^  r-  ^^^?  ^^  *"  J*^'/^®  y^"^  e'^ded  December  31,  1916, 
except  the  Pekmg-Smyuan,  which  is  for  the  year  1915.    It  is  inter- 

^.fniL    .r^*^**'  "^n"''  consideration  is  given  to  the  accumukted 
S    f  .K    ^^"»^«  Government  actually  owns  approximately  one- 

Sw  tif-  *''*"•.'  ^^"'Jy  '?,**'®  investment  assete  of  these  railways 
and  that  this  equity  is  steadily  growmg  from  year  to  year. 

CONSTHUcnON  COSTS. 

The  %ures  shown  above  as  investment  assets  really  represent  the 
atSh'/Z  f/""*  of  the  property,  but  the  last  of  the  above  tables 
shows  the  average  construction  cost  per  mile  of  line  (distributed  to 
accounte)  of  lines  that  have  been  selected  as  typical,  so  ^  to  enable 

^^eT  Kvu  \'-  r'^^-  '^ri  fifl'r'^  ^«^  fuinish^d  by  Mr 
treorge  A  Kyle,  chief  engineer  of  the  Siems-Carey  projects,  and  were 

fl^Hhl^  ^'"'  •""  ^'^T''^  "  ""^^'T  '^^t™**^^  of  costs  of  The  raa^^ 
Stbnr  ™  •contemplates  building  for  the  Ministry  of  Commun^ 

;„  2i.^^  ''T  ««j<"=ted  the  Peking-M-ukden  is  the  oldest,  was  built 
^un?^T,f  r«c  "^^^^  *'^^",  "  ^^"7  P«>fit'^ble  line,  and  runs  through 
w^S?  onlt  tw^ftf  1^^'  "f  ^"^^  moderately  rough,  for  railway  building, 
Ztion  thi  W  ?lf  °M  ''"y/»««ide'-''ble  size.  The  Pekiig-Kalgan 
wa^Cilt  Lf^Lf  nu^  "^  Represent  Peking-SuiyuanllaUwV, 
rfr  fK„  w  f  #n  y  ^^°*®^  engineers.  The  point,  about  25  mil^ 
over  the  West  Hills,  where  the  Tine  passes  under  the  Great  Wall 


100.00 


do 


IMLWAY  MATERIALS,  EQUIPMENT,  AHD  SUPPLIES. 


is  in  a  rough,  broken  mountain  countiy,  and  a  3J  per  cent  grade 
lias  been  used  for  the  east  slope.  The  Tientsin-Pukow  is  the  British- 
German-built  line,  running  through  a  somewhat  more  difficult  country 
than  the  Peking-Mukden  and  with  more  expensive  bridge  construc- 
tion. The  Peking-Hankow  is  the  Franco-Belgian-built  hne,  and 
probably  represents  a  very  fair  average  of  all  the  railways  in  China; 
it  is  rather  interesting  that  in  all  respects  the  figures  for  this  line  are 
near  the  average  for  all  the  lines.  The  bridge  on  this  line  crossing  the 
Yellow  River  is  the  longest  bridge  that  has  been  built  on  any  of  the 
lines.  The  ifth  line  selected,  the  Shanghai-Nanking,  runs  through  a 
densely  settled  country;  the  high  cost  of  this  line  has  been  much 
criticized  by  the  Chinese,  but  it  is  very  substantially  built,  with  rock- 
ballasted  track  and  somewhat  ornate  stations.  The  sixth  and  last 
line  selected  is  the  Shanghai-Hangchow-Ningpo,  which  was  largely 
built  by  Chinese  engineers ;  it  was  hnally  taken  over  and  is  now  oper- 
ated in  connection  with  the  Shanghai-Nanking.  This  line  also  runs 
through  a  densely  populated  country,  and  the  conditions  are  quite 
comparable  to  those  on  the  Shanghai-Nanking.  This  line  was  built 
at  a  lower  cost  per  mile  than  any  other  line,  but  it  is  not  so  substan- 
tially built  as  the  Shanghai-Nanking  and  the  stations  are  more 
simple  in  design. 

^  It  is  not  the  purpose  of  this  report  to  discuss  the  merits  of  the 
difference-in-cost  controversy,  hut  it  is  regarded  as  pertinent  to  refer 
at  this  point  to  photographs  of  some  of  the  stations,  as  illustrating 
the  different  features  of  construction.  Figure  3,  facing  this  page 
shows  the  station  at  Tsinanfu  on  the  German  section  of  the  Tientsin- 
Pukow  line.  Figure  4  sho^vs  the  Shantung  Railway  station,  about 
1,000  feet  from  the  first  station  on  an  air  hne  but  more  than  half  a 
mile  by  road.  Both,  as  shown  by  the  illustrations,  are  very  substan- 
tial and  ornate  buildings.  Figure  5  shows  the  Peking-Mukden 
station  at  Tientsin,  handling  satisfactorily  one  of  the  largest  volumes 
of  passenger  travel  in  China.  Figure  6  shows  the  Chinese  post  office 
at  Tientsin,  a  substantial  and  well-built  structure,  but  not  so  ornate  as 
the  stations  at  Tsinanfu.  Figure  7,  facing  page  64,  shows  a  way  sta- 
tion that  is  typical  of  those  on  the  German  section  of  the  Tientsin- 
Pukow  line  and  on  the  Shantung  Railway,  while  figure  8  shows  one 
of  the  neat  and  well-arranged  way  stations  on  the  Peking-Kalgan 
line.  Figure  9  shows  the  crossover  bridge  between  "loops"  at 
Tsinanfu,  and  figure  10  shows  the  crossover  bridge  at  Tongshan, 
an  equally  important  station  on  the  Peking-Mukden  Railway. 

One  item  of  construction  expense  in  China  that  has  caused  much 
comment  in  the  past  has  been  the  removal  of  graves.  Figure  1 1  shows 
one  of  these  graveyards,  which,  it  will  be  noted,  is  located  in  the  mid- 
dle of  a  cultivated  area.  This  is  a  typical  illustration,  and  these  small 
graveyards  occur  all  over  China,  literally  by  the  thousands.  It  is 
probable  that  the  growing  sentiment  in  favor  of  railways  and  the  Gov- 
ernment regulations  for  buildifig  new  lines  will  greatly  simplify  this 
trouble  in  the  future. 

OPERATING  REVENUES. 

The  following  table  shows  the  operating  results  for  the  same  group 
of  railways  included  in  the  first  table  on  page  63.    This  covers  operat- 


Speclal  Agents  Series  No.  180. 


FIG.  3.— TSINANFU  STATION  ON  THE  GERMAN  SECTION  OF  THE  TIENTSIN- 
PUKOW  RAILWAY. 


FIG.  4.— TSINANFU  STATION   ON  THE  SHANTUNG   RAILWAY. 


i  1 


INTENTIONAL  SECOND  EXPOSURE 


56 


RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


is  in  a  rough,,  broken  mountain  country,  and  a  3|-  per  cent  grade 
luis  been  used  for  the  east  slope.  The  Ti'entsin-Pukow  is  the  British- 
(ictiiuin-l)uilt  line,  rniniing  tlirougli  a  somewhat  more  difficult  country 
than  the  Peking-Mukden  and  with  more  expensive  bridge  construc- 
tion. Tlie  Peking-Hankow  is  tlie  Franco-Belgian-built  line,  and 
])robabIy  represents  a  very  fair  average  of  all  the  railways  in  Cliina; 
it  is  ratiier  interesting  tliat  in  all  respects  the  figures  for  "this  line  are 
near  tlie  average  for  all  the  lines.  The  bridge  on  this  line  crossing  the 
Yellow  Iviver  is  tlie  longest  bridge  that  has  l>een  built  on  any  of  the 
lines.  The  fifth  line  selected,  the  Shanghai-Nanking,  runs  tlu-ough  a 
densely  settled  country;  tlie  high  cost  of  tliis  line  lias  been  mucii 
criticized  l»y  the  Chinese,  ])ut  it  is  very  substantially  built,  with  rock- 
ballasted  track  and  somewhat  ornate  stations.  The  sixth  and  last 
line  selected  is  the  Shangiiai-Hangchow-Ningpo,  which  was  largely 
built  l)y  Chinese  engineers;  it  was  tinallv  taken  over  and  is  now  oper- 
ated in  connection  with  tlic  Shanghai-Jsanking.  Tliis  line  also  runs 
througli  a  densely  populated  countr3^  and  the  conditions  are  cpiite 
comparable  to  tliose  on  tlie  Sfianghai-Nanking.  This  line  was  built 
at  a  lower  cost  per  mile  tlian  any  otlier  line,  l)ut  it  is  not  so  sul)stan- 
tiiilly  })uilt  as  the  Sliangliai-Nanking  and  the  stations  are  more 
simple  in  design. 

It  is  not  tlie  purpose  of  tliis  report  to  discuss  the  merits  of  the 
difi'erence-in-cost  controversy,  l)ut  it  is  rc^garded  as  ])ertinent  to  refer 


Pukow  line.  Figure  4  shows  tlie  Sliantung  Railway  station,  about 
1,000  feet  from  tlie  first  station  on  an  air  line  but  more  than  half  a 
oiile  by  road.  Both,  as  shown  by  the  illustrations,  are  very  substan- 
tial  and   ornate   buildings.     Fimire   5  shows   the   PekinVl 


-Mukden 


station  at  Tientsin,  handling  satisfactorily  one  of  the  largest  volumes 
of  passenger  travel  in  China.  Figure  6  sho^ra  the  Chinese  post  office 
at  Tientsin,  a  sul)stantial  and  well-built  structure,  but  not  so  ornate  as 
the  stations  at  Tsinanfu.  Figure  7,  facing  page  64,  shows  a  way  sta- 
tion that  is  typical  of  tliose  on  tlie  German  section  of  the  Tieiitsin- 
Pukow  line  and  on  the  Shantung  Railway,  wliilc  figui-e  8  shows  t)no 


an  equally  important  station  on  the  Peking-Mukden  Railwa.}-. 

One  item  of  construction  expense  in  China  that  has  caused  much 
comment  in  the  past  has  been  the  removal  of  graves.  Figure  1 1  shows 
one  of  these  graveyards,  wliicli,  it  will  be  noted,  is  located  in  tlie  mid- 
dle of  a  cultivated  area.  This  is  a  typical  illustration,  and  these  small 
grave}' ards  occur  all  over  China,  literally  by  tlie  thousands.  It  is 
prol)al>le  tliat  the  growing  sentiment  in  favor  of  railways  and  tlie  Gov- 
ernment regulations  for  buildiAg  new  lines  will  greatly  simplify  this 
trouble  in  the  future. 


OPEEATING  KEVENUES. 


of 


The  following  table  shows  the  operating  results  for  the  same  group 
railways  included  in  the  first  table  on  page  53.    This  covers  operat- 


Special  Agents  Series  No.  180. 


iic-. 


1 


FIG.  3.— TSINANFU  STATION  ON  THE  GERMAN  SECTION  OF  THE  TIENTSIN- 

PUKOW   RAILWAY. 


S 


I 

1 


III 


i 


FIG.  4.— TSINANFU   STATION   ON  THE  SHANTUNG   RAILWAY. 


Special  Agents  Series  No.  180. 


FIG.  5.— TIENTSIN  STATION  OF  THE  PEKING-MUKDEN   RAILWAY. 


FIG.  6.— CHINESE  POST  OFFICE  AT  TIENTSIN. 


I I 


CHINA. 


57 


ill.  I 


ing  expenses  and  net  results  for  operating  only  and  is  not  intended 
to  include  any  other  figures: 

OPERATING   RESULTS  OF  CHINESE    GOVERNMENT  RAILWAYS  FOR  YEARS  ENDED 

DEC.  31,   1915  AND   1916. 


Name  of  railway. 

Operating  revenues. 

operating  expenses. 

Operating 
ratio. 

Net  operating 
revenue 

1915 

1916 

1915 

1916 

1915 

1916 

1915 

1916 

Peking-Mukden. . . 
Peking-Suiyuan. . . 
Tientsin-Pukow. . . 
Peking- Hankow . . . 
Cheng-Tai 

Met. 

dollars. 

15,277,931 

3,613,394 

8,525,038 

17,141,100 

2,111,500 

633,400 

1,156,200 
3,418,058 

1,914,242 

Mex. 

dollars. 

14,809,724 

3,895,780 

10,188,976 

20,466,622 

2,184,027 

834,945 

1,286,794 
3,818,270 

1,798,504 

Mex, 
dollars. 
1 ,o7y, oyy 
1,956,504 
5,307,034 
7,120,200 
1,319,500 

379,800 

531,700 
2,023,654 

1,468,402 

Mex. 
dollars. 
5,953,576 
2,317,139 
5,121,879 
7,027,542 
1,290,367 

380,717 

668,290 
1,904,016 

1,444,826 

49.6 

(«) 
60.9 
42.0 
63.0 
60.0 

46.0 
59.2 

76.7 

40.3 
59.5 
50.4 
34.3 

59.0 
45.5 

44.0 
49.9 

80.3 

Mex. 

dollars. 

7,698,332 

1,656,890 

3,218,004 

10,020,900 

792,000 

253,600 

624,500 
1,394,404 

445,840 

Mex. 

dollars. 

8,856,148 

1,578,641 

5,067,097 

13,439,080 

893,660 

454,228 

718,504 
1,914,254 

353,678 

Taokow-CWnghua . 

Kaifeng-Honan  (Pi- 

enlo) 

Shanghai-Nanking. 
Bh  anghai-Hang- 
chow-Ningpo 

Subtotal 

Chuchow-Pingh- 
siang 

53,790,863 

(») 

805,800 
850,600 

59,283,642 

744,566 
794,223 
962,09! 

27,686,393 

(6) 

804,500 
480,000 

26,008,352 

690,123 
829,663 
487,435 

5L3 

(ft) 
99.0 
56.0 

44.1 

92.7 

104.5 

50.7 

26,104,470 

(*) 

1,300 
370,600 

33,275,290 

54,443 

-35,440 

474,656 

Canton-Kowloon. . . 
Cauton-Samshui. . . 

Total 

55,447,263 

61,784,522 
65,447,263 

28,670,893 
28,015,573 

28,015,673 

52.3 

45.3 

26,476,370 

33,768,949 
26,476,370 

+6,337,259 

-955,320 

+7,292,579 

a  A  part  of  the  Kalgan-Suiyuan  section  was  under  construction  during  the  year  1915. 
b  Figures  for  1915  not  available. 


Name  of  railway. 


Total  gross  income. 


Peking-Mukden 

Tien  tsm-Pukow 

Peking-Hankow 

Shanghai-Nanking 

Shanghai-Hongchow-Nin^o 

X  UvCU«*a  w  •■••■•■••••••a 


1915 


1918 


Total  operating  ex- 
penses. 


Mex. 
dollars. 

15,42.5,999 
8,556,346 

17,237,012 
3, 442, 596 
2,072,400 


46,734,353 


Mex. 

dollars. 

1  5,194,515 

10,315,314 

20,553,456 

3,&37,845 

1,875,488 


51,776,616 


1915 


Mex. 
dollars. 
7,579,599 
5,307,034 
7, 120, 173 
2,023,654 
1,468,402 


23,498,832 


1916 


Mex. 
dollars. 
5,95.3,576 
5,121,879 
7,027,542 
1,904,016 
1,444,826 


21,451,839 


Total  net  income. 


1915 


Mex. 
dollars. 
7,846,400 
3,249,312 
10,116,839 
1,418,942 
603,998 


23,235,491 


1916 


Mex. 
dollars. 
9,240,939 
5,193,435 
13,525,914 
1,933,829 
430,660 


30,324,777 


Name  of  railway. 


Total  fixed  charges 
and  taxes. 


1915 


Peking-Mukden 

Tientsin-Pukow 

Peking- Hankow 

Shanghai-Nanking 

Shaughai-Hangchow-Ningpo 

Total 


Mex. 
dollars. 
2,437,962 
5,976,695 
4,047,267 
1,906,154 

909,464 


1916 


■urplus  or  deficit. 


1915 


15,277,542 


Mex. 

dollars. 
3,351,690 
4,987,533 
4,774,001 
1,442,386 
691, 736 


15,247,346 


Mex. 

dollars. 

5,408,438 

-2,727,383 

6,069,572 

-  487,212 

-  305,466 


1916 


7,957,949 


Mxe. 

dollars. 

5,889,249 

205,902 

8,751,913 

491,443 

-281,076 


15,077,431 


INTEREST  CHARGES  AND  TAXES. 

The  last  three  columns  of  the  first  table  on  page  53  show  interest 
on  funded  debt  and  surplus  or  deficit  of  net  income.     These  figures 


INTENTIONAL  SECOND  EXPOSURE 


CHINA. 


57 


Special  Agents  Series  No.  180. 


FIG.  5.— TIENTSIN   STATION  OF  THE  PEKING-MUKDEN    RAILWAY. 


FIG.  6.— CHINESE  POST  OFFICE  AT  TIENTSIN. 


ing  expenses  and  net  results  for  operating  only  and  is  not  intended 
to  include  any  other  figures: 

OPERATING   KESULTS  OF  CHINESE    COVERNMENT  RAILWAYS  FOR  YEARS   ENDED 

DEC.  31,  1915  AND   1916. 


Name  of  railway. 

Operating  revenues. 

Operating  expenses. 

Operating 
ratio. 

Net  operating 
revenue 

1915 

1916 

1915 

1916 

1915 

1916 

1915 

1916 

Pcking-Miikden. . . 
I'cking-Suiyuan. . . 
Tientsin-Piikow. . . 
Peking-Hankow . . . 

Chcng-Tai 

Taok  ow-Chinghua . 
Kaifeng-Honau  (Pi- 

cnlo) 

Shan  g]  1  ai-  Nank  ing. 
Shanghai  Hang- 

chow-Ningpo 

Mex. 

dollars. 

15,277,931 

3,613,394 

8,. 525, 038 

17,141,100 

2,111,5(X) 

633,400 

1,156,200 
3,418,058 

1,914,242 

Mcx. 

dollars. 

14,809,724 

3,895,780 

10,188,976 

20,466,622 

2,184,027 

834,945 

1,286,794 
3,818,270 

1,798,-504 

Mex. 
dollars. 
7,579,599 
1,956,504 
5,307,034 
7,120,200 
1,319,500 
379,800 

.531,700 
2,023,654 

1,468,402 

Mex. 

dollars. 
5,953,576 
2,317,139 
5,121,879 
7,027,542 
1,290,367 
380, 717 

568,290 
1,904,016 

1,444,826 

49.6 
(«) 
60.9 
42.0 
63.0 
60.0 

46.0 
59.2 

76.7 

40.3 

59. 5 
,50.4 
34.  3 
59.  0 
45.5 

44.0 
49.  S 

80.3 

3fex. 

dollars. 

7,698,332 

1,656, 89(: 

3,218,004 

10,020,9(X 

792,000 

253,600 

624,500 
1,394,404 

445,840 

Mcx. 

dollars. 

8,858,148 

1,578,641 

5,067,097 

13,439,080 

893,660 

454, 228 

718,504 
1,914,254 

353,678 

Subtotal 

Clnichow-Pingli- 
siang 

53,790,863 

(ft) 

805,800 

850,6(y3 

59,283,642 

744,566 
794,223 
962,09! 

27,080,393 

(ft) 

804,  .500 
480,000 

26,008,352 

690,123 
829,663 
487,435 

51.3 

(ft) 
99.0 
56.0 

44.1 

92.7 

104. 5 

50.7 

20,104,470 

(ft) 

1,300 
370,600 

33, 275, 290 

54,413 

-35,440 
474,656 

Canton-Kowloon. . . 
Canton-Samshui. . . 

Total 

55,447,263 

61,784,522 
55,447,263 

28,970,893 
28,015,573 

28,015,573 

52.3 

45.3 

26,176,370 

33,768.949 
26,476,370 

+6,337,259 

-955,320 

+7,292,579 

a  A  part  of  the  Kalgan-Suiyuan  section  was  under  construction  during  the  vcar  1915. 

b  Fifiirns  fnr  IQIK  nnJ  ii.v;iiln.hlo 


6  Figures  for  1915  not  available 


Name  of  railway. 


Peking-Mukden 

Tientsin-Pukow 

Peking- Han  kow 

Shanghal-Nanknig 

Bhanghai-Hangchow-Nmgpo . . 

Total 


Total  gross  income. 


1915 


Mex. 

dollars. 
15,42.5,999 

8,556,346 
17,237,012 

3,442,596 

2,072,400 


46,734,353 


1916 


3fex. 

dollars. 

1  5,194,515 

10,315,314 

20,553,4.56 

3,837,845 

1,875,489 


51,776,616 


Total  operating  ex- 
penses. 


1915 


Mex. 
dollars. 
7,579,599 
5,307,034 
7, 120, 173 
2,023,651 
1,468,402 


23,498,832 


1916 


Mex. 
dollars. 
5, 953,  576 
5,121,879 
7,027,542 
1,904,016 
1,444,828 


21,451,839 


Total  net  income. 


1915 


Mcx. 
dollars. 
7,846,400 
3,249,312 
10,116,839 
1,418,942 
603,998 


23,235,491 


1916 


Mcx. 
dollars. 
9,240,939 
5,193,435 
13,525,914 
1,933,829 
430,660 


30,324,777 


Name  of  railway. 


Total  fixed  charges 
and  taxes. 


1915 


Peking-Mukden 

Tien  tsin-Pukow 

Pek  i  ng-IIankow 

Shanghai-Nanking 

Shanghai-Hangchow-Ningpo 

Total 


Mex. 
dollars. 
2,437,962 
5,976,695 
4,047,267 
1,906,154 

909, 464 


15, 277, 542 


1916 


Surplus  or  deficit. 


1915 


1916 


Mcr. 
dollars. 
3,  .351, 690 
4, 9S7, 533 
4,774,001 
1,442,386 

691, 736 


15,247,346 


Mcx. 
dollars. 

5,408,438 

-2,727,3H3 

6, 069, 572 

-  487,212 

-  305,466 


Mxe. 
dollars. 
5,889,219 

205,902 
8,751,913 

491,443 
-261,076 


7,957,949       15,077,431 


INTEREST  CHARGES  AND  TAXES. 

The  last  three  columns  of  the  first  table  on  page  53  show  interest 
on  funded  debt  and  surplus  or  deficit  of  net  income.     These  figures 


68 


BAILWAY  MATEBIALS,  EQUIPMENT,  AMD  SUPPLIES. 


CHIHA. 


I  I 


show  oiilj  the  interest  on  funded  debt  and  do  not  include  any  aUow- 
ance  on  the  permanent  investments  of  the  Chinese  Government. 
IMS  mtormation  is  mven  to  show  the  margin  of  safety  that  the 
thmese  Government  has  m  meeting  the  fixed  expenses  on  this  grouo 
of  railways.  It  shouMJ>e  realized,  of  course,  that  as  loans  are  amoi-- 
tized  tills  margin  of  safety  will  be  increased  from  year  to  year. 

SUKPLUS  OK,  BEPICIT. 

The  Chinese  Govemnient  has  a  good  margin  of  sur|>lus  at  the  pres- 
fhtwT«      *^®f  ^^g  ^b«  i^^<5^«^s*  charges  on  the  funded  debt,  and 

tlie  funded  debt  on  the  Hukuang  Kailways,  which  for  the  present 
makes  a  considerable  reduction;  when  these  lines  are  completed 
teri;'-  ?^  ^oummB  not  be  long  before  thejr  will  be  meeting  ali 

fc^r  "^^f^l^^'^^^^^  probably  producW  a  surplus,  ft  is 
felt  by  the  writer  that  the  financial  status  of  the  Chinese  Government 
JKaiiways  18  really  much  better  than  has  been  generally  supposed. 
ItT  il!r  ^T^  "^  '^^^  coiinection  that  probably  deserves  explana^ 
iicm— tuat  IS,  the  equity  of  the  property  added  from  surplus  earn- 
ings; but  the  action  of  the  Peking^Mukden  bondholdera  m  a^eein*^ 
fl  J#  ^r'^tT^'n,^^,  f^  Peking-Suiyuah  road  from  surpluf  earn- 
ingh  of  the  FekiDg-Mufcden  hne  would  seem  to  have  disposed  of  this 

2to7ernme'?t  *  ^'^"''*''^  ^""^'^^^^  ^  ^^  advantage  of  the  Chinese 
OlGANKATIOIf  AND  ACTIVITIES  OP  MiNlSTIlf  OP  COMMUNICATIONS. 

:i»!¥EI.OPMENT  ANB  GBN1«AL  FUNCTIONS. 

.Jt^i^'f^  ^i*"^  ^"^^^  the  organization  of  a  board  for  the  central 
control  of  railways  was  an  edict  issued  in  1898.  Kent  gives  a  trans- 
lation of  a  portion  of  this  edict,  as  foUows: 

Railwaye  and  miees  are  nowadaye  tlie  moat  important  enterpmeo  in  thia  Empire 
Fml;  J.JX®*r^'  however,  appfelieMive,  in  view  of  the  number  of  Provincefi  in  the 
Empire  and  tlie  vanoiia  conditiona  of  men  wlio  will  attempt  to  open  mines  ofall  aorta 

whi.i!  w  ^"i^'  t**  *  ^^T'^^y  ^^  '^^**^*  *«*^  «™"i^  confusion  mil  be  the  reault 
which  would,  of  coupe,  be  detrimental  to  the  principal  object  we  have  of  eettinTthe 
fnllest  advMtageii  obtainable  ont  of  each  and  every  undertaldng  iS  this  dScfn 

It  la  therefore  highly  important  that  there  shoGld  be  a  ceXlbureaTto  dWt 
under  a  aingle  ayateni,  the  worMng  and  exploitation  of  LnTs  aL  Xay^  i^h^ 
Empire  and  we  hereby  command  that  a  Bureau  of  Control  for  Kail  wave  MdTfinea 
be  eatablMhed  m  Peking,  to  the  two  chief  commiasioneXiB  ofTidTwe^o^^^^ 

cCgTS^*'  ™"'''"  "^  "^  ^™^^-^^  ^*^™^'^'  '^"^^'  wCg  wrxri 

♦I. J^ir^^  *T  ^.^^®^  commiaeionera  ahall  from  henceforth  have  apecial  control  over 
the  opemng  of  mines  and  construction  of  railwaya  throughout  the^mpire  and  com. 
I»Mea  formed  for  the  above  purnoaee  will  in  future  be  rlquiied  to  applTioX 
commMBioneri  fof  penniasion  anf  guidance  in  their  operatfona. 

^  This  board  went  out  of  existence  when  the  Tsung-li  Yamen  was 
criscontmucd.  The  next  step  was  the  estabhshment  of  the  Board  of 
^' ommunications  (Yu  Chuan  Pu,  Chinese  name)  by  the  imperial 
edict  of  November  6,  1906,  to  control  the  systems  of  railways,  posts 
telegraphs  and  telephones,  and  steam  navigation.  This  name  was 
changed  to  the  Ministrv  of  Communications  (Chiaotung  Pu)  after  the 
establishment  of  the  Republic,  and  the  latter  designation  has  been 
generally  employed  in  this  report.  There  is  a  president  and  vice 
president,  with  a  staff  for  the  direction  of  the  several  departments.. 


59 


The  genera?  administration  of  the  departments  of  posts  and  tele- 
graphs and  telephones  is  handled  by  the  Ministry  of  Communications. 
The  railway  administration  is  in  general  along  the  following  lines: 

The  Chiaotung  Pu  (Ministry  of  Communications)  is  the  contract- 
ing branch  of  the  Chinese  Government  for  the  financing  and  con- 
struction of  new  railways  and  the  extensions,  additions,  and  better- 
ments to  existing  lines. 

ACCOUNTS. 

A  Commission  for  the  Unification  of  Kailwav  Accounts  and  Statis- 
tics was  created  in  1913.  Hon.  K.  C.  Yih,  then  director-general  of 
railways  and  now  vice  president  of  the  Ministry  of  Communications, 
was  and  still  is  chairman;  Dr.  C.  C.  Wang,  then  associate  director 
and  now  managing  director  of  the  Peking-Hankow  Kailway,  was 
and  still  is  vice  chairman;  and  Dr.  Henr;^  C.  Adams,  of  the  United 
States,  acted  as  adviser.  The  result  of  this  commission  has  been  the 
working  out  and  adoption  for  use  on  all  the  Chinese  Government 
Railways  of  an  excellent  system  of  unified  accounts  and  statistics. 
The  membership  of  the  present  standing  committee  is  as  follows: 

Chairman:  Hon.  Yih  Kung-Chau,  vice  president,  Ministry  of  Communications. 
Vice   chairman:  Dr.    Wang  Ching-chun,    managing  director   Peking-Hankow 
Railway. 

Member:  C  S  Liu,  chief  accountant,  Ministry  of  Communications. 

Member:  H.  C.  Chang,  Ministry  of  Communications. 

Member:  Y.  C.  Wang,  Ministry  of  Conamunications, 

Member:  S.  F.  Yih,  Ministry  of  Communications. 

Afember:  H.  G.  Yu,  Ministry  of  Communications. 

Member:  H.  Y.  Hu,  Ministry  of  Communications. 

Jlember:  C.  K.  Tsao,  Ministry  of  Communications. 

Member:  W.  Henderson.  Peking-Mukden  Railway. 

Member:  H.  C.  Lee,  Feking-Suivuan  Railway. 

Member:  K.  Y.  Pao,  Tientsin-Pukow  Railway. 

Member:  T.  K.  Tcheng,  Peking-Hankow  Railway. 

Member:  B.  Billion,  Peking-Hankow  Railway. 

Member:  T.  Cheu,  Cheng-Tai  Railway. 

Member:  A.  Louillet,  Pienlo  Railway. 

Member:  Souen-Souen,  Pienlo  Railway. 

Member:  C.  P.  Yin.  Shanghai-Nanking  Railway. 

Member:  H.  Middleton,  Shanghai-Nanking  Railway. 

Member:  T.  G,  J.  Brown,  Canton-Hankow  Railway. 

Member:  C.  L.  Chen,  Canton-Hankow  Railway. 

The  system  of  accounts  is  certainly  one  of  the  best,  if  not  actually 
the  best,  that  has  ever  been  worked  out  in  any  country  up  to  this 
time.  It  provides  for  classification  of  capital  expenditures,  operating 
revenue,  operating  expenses,  income  account,  profit  and  loss  account, 
and  general  balance  sheet,  and,  in  addition,  provides  a  very  excellent 
arrangement  of  a  classified  surplus  appropriation  account,  which 
might  be  adopted  to  advantage  in  the  American  system  of  railway 
accounts,  "^ 

In  adopting  the  various  features  careful  study  was  made  of  all  the 
other  systems  of  accounts  in  use,  and,  as  the  methods  on  the  various 
railways  m  China  represented  nearly  all  known  practices,  full  advan- 
tage was  taken  of  the  good  points  of  each.  In  view  of  the  beneficial 
results  accruing  from  the  work  of  this  commission,  the  outlook  would 
seem  hopeful  for  unifying  some  of  the  other  features  of  the  Chinese 
railways  as  suggested  later  in  this  report. 


60  :MILWAY  M ATBIOALS,  EQtJIPMEHT,  AHD  SUPPLIES.  ' 

As  a  rale,  purdiases^ar©  mtde  by  the  m.an„iigenients  of  tlie  different 
railways,  particularly  in  a  number  of  cases  wbere  a  certain  procedure 
m  required  by  tbe  railwajrjoan  agreement;  but  there  bave  been  a 
number  of  instances  in  which  certain  purchases  have  been  directed 
or  consummated  by  the  Ministry  of  Communications,  and  it  appears 
that  there  is  a  decided  tendency  on  the  part  of  the  Ministry  to  take 
over  the  handhng  of  certain  classes  of  purchases.  The  purchases  for 
the  departments  of  posts  and  telegraplis  and  telephones  are  largely 
handled  directly  by  the  Ministry  of  Communications,  and  it  is  very 
likely  that  m  the  course  of  thne  this  practice  will  increase  in  connec- 
tion with  the  purchase  of  railway  requirements,  with  the  ultimate 
result  that  all  purchases  for  all  these  departments  will  be  handled  by 
this  central  organization.  Equipment  for  the  joint  use  of  a  number 
of  the  lines  (such,  for  instance,  as  freight  care)  m„ight  be  bought 
throueh  an  equipment  trust  certiOcate  scheme,  and  this  may  be 
regarded  as  a  probable  future  arrangement.  Such  negotiations  wiU 
probably  be  handled  by  the  Ministry  of  Communications. 

C30NSni»CTI0N  Of  NIW  MNESL 

Tlie  general  direction  of  all  new  lines  of  railway  is  under  the  juris- 
diction of  the  Ministry  of  Communications.  For  the  larger  projects 
such  as  the  Hukuang  Railways,  it  is  the  rule  to  have  a  director  general 
in  charge  of  the  entire  set  of  projects  and,  in  addition,  a  managing 
director  m  charee  of  the  different  railways,  such  as  the  Canton- 
Hankow  line.  He  approval  of  locations,  plans,  and  specifications 
and  the  inviting  and  acceptmg  of  tenders  are  supervised  through  the 
director  general  and  the  managing  directors.     "' 

RIGllUnON  OP  FAII18  AND  lUVIS. 

There  is,  it  may  be  said,  no  commorcial  traffic  department  in  the 

Chinese  Government  railways  oi^anization.  The  conduct  of  trans- 
portation and  the  commercial  arrangements  both  come  under  what 
(as  on  the  Australian  raiways)  is  called  the  traffic  department. 

The  shortage  of  freight  equipment  of  all  classes  has  been  chronic 
on  all  the  Imes  for  several  years  past,  and  the  railways  have  moved 
what  freight  they  could  handle  with  the  equipment  they  had,  so 
tliere  has  been  little  occasion  to  have  an  organization  for  soliciting 
business.  One  result  of  this  condition  has  been  that  there  is  very 
little  interchange  of  business  between  the  different  lines,  since  each 
railway  will  not  aUow  its  cars  to  get  away  onto  the  other  lines 
although  the  per  diem  is  usually  U  Mex.  for  a  20-ton  car  and  a  pro 
rata  charge  for  cars  of  lai^er  capacity.  There  are  seldom  through 
rates  in  effect  between  the  different  lines.  In  a  number  of  mstances 
there  are  forwarding  companies  that  take  the  shipments  on  the 
originating  line,  look  after  trans-shipments  at  junction  points,  and 
follow  over  the  termmatmg  line;  but  such  companies,  of  course, 
have  to  make  their  profits  and  pay  all  the  various  kinds  of  expenses, 
80  the  combined  cost  is  high-^-especially  when  there  is  any  '^squeeze" 
prevailing,  which  is  said  ffequently  to  ne  the  case. 
,  The  Ministiy  of  Communications  exercises  veiy  little  actual  direc- 
tion over  the  commercial  traffic;  instead,  this  comes  almost  entirely 
under  Ihe  direction  of  the  management  of  the  several  railways,  each 


CHIFA. 


61 


system  issuing  its  own  tariffs  and  traffic  regulations, 
issued  by  the  Ministry  of  Communications. 


No  tariffs  are 


PASSENGER  FARES. 


First-class,  second-class,  and  third-class  fares  prevail  on  all  the 
lines,  and  on  some  lines,  such  as  the  Tientsin-Pukow,  there  is  what 
m  called  a  "coolie  rate,"  which  in  effect  is  a  workman's  or  laborer's 
rate.  The  fares  on  the  Peking-Mukden  and  Tientsin-Pukow,  which 
can  be  considered  tvpical,  are  approximately  as  follows:  First- 
class,  6  cents;  seconcf  class,  4  cents;  third  class,  2  cents;  Tientsin- 
Pukow  coolie  rate,  1  cent.  All  these  are  Mexican  cents.  On  the 
Peking-Suiyuan  line  the  rates  are  6.5  cents  (Mex.),  4f  cents,  and 
2J  cents,  but  the  passenger  travel  on  this  line  is  light  as  compared 
with  that  on  the  Peking-Mukden  line.  The  Shanghai-Nanking  fares, 
on  account  of  water  competition,  are  lower  than  those  above  men- 
tioned and  are  approximately  as  follows:  First  class,  4.25  cents 
(Mex.);  second  class,  2.35  cents;  third  class,  1.15  cents;  coolie  class, 
0.75  cents. 

The  percentage  of  first  and  second  class  travel  is  small,  and  the 
third  class  constitutes  the  bulk  of  the  business  on  all  the  lines.  The 
following  table — an  analysis  of  passenger  service  during  1916 — 
shows  these  percentages  on  the  Pelking-Mukden  and  Tientsin-Pukow 
lines,  which  are  considered  typical.  The  total  number  of  passengers 
carried  on  the  Peking-Mukden  was  3,671,2^4,  from  which  the  revenue 
was  $6,215,460  Mex.,  and  the  Tientsin-Pukow  carried  2,914,188,  from 
which  the  revenue  was  $4,273,746  Mex. 


Class  of  service. 


Ordinary: 

First  class 

Second  class 

Third  class 

coolie 

Government: 

Civil 

Military 

Privilege 

Excursion  and  season  tickets. 

Excess  fares 

Sleeper  charges 

Baggage 

Postal 


Total 


Peking-Mukden. 


Number 
carried. 


Per  cent. 
1.73 
2.20 

90.83 
.00 

.19 

.45 

.08 


Passenger 
miles. 


Revenue. 


Tientsin-Pukow. 


100.00 


Percent. 
1.98 
2.39 

88.27 
.00 

.70 

5.83 

.74 

.09 


100.00 


Percent. 
5.57 
4.42 

78.28 
.00 

.38 

3.65 

.43 

.10 

.08 

.32 

2.50 

2.45 


Number  Passenger 
carried.      miles. 


Percent. 

.43 

.63 

60.72 

32.41 

(a) 
5.33 
.05 
.43 


100.00 


Percent. 

2.09 

1.60 

60  00 

21.27 

(a) 
13.71 

.26 
1.07 


100.00 


Revenue. 


Per  etnt. 
6.72 
3.44 
64,76 

lass 


(«) 


8.21 
.17 
.71 

.m 

.81 
3.12 


o  Less  than  one-half  of  1  per  cent. 

First-class  passengers  are  usually  allowed  150  pounds  of  baggage 
free,  second  class  100  pounds,  an3  third  class  80  pounds.  Excess 
is  charged  at  the  rate  of  i  cent  (Mex.)  per  mile  for  each  picul  (133  J 
pounds).  As  a  matter  of  fact,  particularly  in  the  case  of  third-class 
passengers,  a  very  large  amount  of  luggage  is  carried  in  the  cars  by 
the  passengers.  This  tendency  is  accentuated  by  the  fact  that 
the  registermg  (checking)  is  attended  with  some  trouble  and  risk  of 
loss  and  the  payment  for  lost  baggage  is  rather  small,  amounting  in 
no  case  to  more  than  150  Mex.  for  a  piece  of  first-class  baggage  and 
less  for  the  lower  classes.    On  most  lines,  however,  there  is  an 


62 


aULlTAY  MATERIALS,  EQUIPMENT,  AKB  SUPrLIES, 


trraiigement  for  msiiraace  of  baggage  wlieo  it  is  checked.    TI10 
allowable  amouiit-s  are  from  $50  to  $200  Mex.,  and  the  premiimi  ia 

at.  the  rate  of  1  per  cent.  ^ 

Fgiire  25,  facing  pme  97,  shows  a  typo  of  bam^ago  truck  used  on 
tt'Mi  1:  ekiEg-HaEkow  Kailwaj,  and  the  luggage  shown  is  typical  of  the 
niiscellaneous  materi,ala  shipped  as  passengera'   bagga4. 


nBGin*  M;AT£». 


Agam  taking  the  Peki:ng-Mukden  as  typicsl  of  the  Chuiese  Govem- 
iiicnt  Railways,  one  finds  the  freight  rates  per  mile  and  classifications 

.111  effect  as  shf)wn  by  the  following  table.    This  same  table  shows 
the  rates  m  effect  on  the  Peking-Siiiyoan  line: 


B.sil«ay  nd  nnits  of  'Wffgbt. 


KKIMiMlinCDlS  EAILWAY, 

'Per  pic'til  (l,33i  potinds).,. . , 

Fer  ton  of  .our-aicryiag  mpad ty , 

f  ■iwo-awrrwjiM  .sailway. 


'OUS. 


pictil  ( 1 331  poands) 

Per  loo  (a,  WO  pounds)  per  miJe. , 


Jlkx. 

0.ft» 
.073 


..§73 


l.'''iU3wi  X. 


wi«l3IS  •. 


Ik  am 
.osoo 


.00.W 

•  "jwiil'iylW 


Ma, 
Mietn. 
a. '003.3 
.0»0 


.«M7 
.W70 


Class  3. 


Mex. 
iftllurs. 

0.0025 

.0175 


.0320 


Class  4. 


Ma. 
dtdiart,. 


0.0023 

.0300 


Dangerous  .and,  offensi  ire '-goods  are  included  in  the  "dangerous" 
classi,faca.tion.     Class  1  inckdfts  the  m,.ajo.ri.ty  of  merchandise.     The 

Fetang-SuiyM,an  classification  tends  to  give  actually  .a  lower  rate  for 
the  reMon  that  there  are  .nio,re  articles  m  the  lower  d[,asses.  ' 

On  the  Peking-Mukden  the  .m.inimum  hanl  charged  for  is  3.5  miles, 

except  m.  some  special  cases,  wlien  this  .13  reduced  to  30  m..iles  A 
demur.rage  charge  of  110  Mex.  'per  day  is  made  for  a  20- ton  car 
and  cars  of  other  capacit.ies  are  chargedMor  pro  rata  for  any  time  in 
exctw  of  1 2  hours  for  unloading  or  ioacling.  the  .Peking-Sui Wan  .rate 
18  f§,  .Mex.,  for  a  20-ton  car,  with  cars  of  other  capacities  pro  rata 
Wo  car-performance  statistics  arc  avaOable  for  the  Chinese  Govern- 
ment  Railw.ays,  but  it  is  quite  obwous  that  they  are  getting  full  use 
of  their  equipment.  It  is  stated  t,hat  the  average  fre:ight  car  com- 
ptetes  a  fni  cycle  of  loading,  niovement,  and  unloading  every  five 
days.  "^ 

the  roles  regarding  .fines  that  are  effective  on  the  Peking-Suiyuan 

Inie  s«em  sufficiently  mteresthig  to  warrant  the  reprinthig  of  the 

-actual  text  of  the.m: 

Rum  4,— The  conripior  must  report  to  theetotioa  master  the  e.xact  weiglit  in  piruls 
.tiid  the  nti,m.ber  ol  pieces  of  retailed  ,good,B,  and  if  tliia  is  .falsely  declared  he  will  be 
inec|  5  tiiiies  the  ordinary  freiglit  on  any  excess  weight  witlim  10  piculs,  10' tiinea 
mi,th.i,ii,  m  piculs,  .and  30  tim«  when  it  is  over  20  picuE, 

Rule  5.— Cars  should  be  load,ed  according  to  their  tonnagC'  capacity.  A  10-ton  car 
can  J.>e  loaded  1  picul  over  ite  ca.rryiii.g  capacity,,  a  20-ton  car  2  picula,  and  a  30-ton  car 
i  jMciJls.  The  co^Esignor  will  be  fined  5  tiroes  the  ordinary  freight  on  my  excess 
weight  up  to  1  ton,  10  tim,e8  up  to  2  ton.s,  and  30  times  when  it  is  over  2  torn 
^  licLE  6.^Sevent3r  per  cent  of  the  fines  charged  on  exceii  weight  found  eitlier  at 
intermediate  or  .receiving  stations  will  belong  to  tlie  station,  and  30  per  cent  will  be 
.awarded  to  the  diacoverers:.  On  the  other  hand.,  if  the  man  who  weighed  the  goods  at 
the  stations  purpowly  gave  t  wrong  weight,  then  them  men  and  the  ownere  of  the 
good,8  .mufit  each,  imj  luilf  the  .ine,  or  they  m^  be  i>u.t  under  arrest  if  the  caiae  is  Berioua, 


^LJ  JL.JL  JL  JL^  iCm9 


Oii* 


OBGANIZATIOM  OF  CHINESE  GOVERNMENT  RAn.WAYS. 

As  already  stated,  the  Mmistry  of  Communications  is  oi^anized  for 
the  reorulation  rather  than  for  participation  in  the  administration  of 
the  railways.  At  present  there  is  a  closer  supervision  of  the  accounts 
than  of  any  other  branch  of  the  railway  department,  with  a  tendency 
toward  extending  the  supervision  or  direction  of  purchases,  which 
may,  in  the  course  of  tims,  be  centrahzed  in  Peking  so  far  as  the  loan 
agreements  will  permit  this  to  be  done.  General  regulations  govern- 
ing the  organization,  grading  of  salaries,  free  travel,  and  similar 
matters  are  promulgated  from  time  to  time. 

The  following  is  a  translation  from  the  Chinese  text  of  the  regula- 
tions promulgated  August  31,  1916,  covering  the  organization  for  the 
construction  period  and  for  maintenance  and  operation  after  the 
completion  of  construction.  It  represents,  in  general,  the  organiza- 
tion now  in  effect  on  all  the  principal  railways  coming  under  the 
direction  of  the  Mmistry  of  Commimications.  It  should  be  under- 
stood that  these  regulations  are  in  no  way  effective  on  any  of  the 
foreign  railways. 

1.  Previous  to  the  establishment  of  the  official  system  the  organization  of  Govern- 
ment railway  offices  shall  be  in  accordance  with  these  regulations. 

t.  Administration  offices  and  construction  offices  of  Government  railwayi  shall  be 
under  the  immediate  control  of  the  Ministry  of  Communications.  The  names  of  such 
offices  and  the  lines  under  their  control  will  be  designated  in  the  regulations  governing 
the  organization  of  those  offices. 

3.  Railway  administration  offices  shall  have  charge  of  the  traffic,  maintenance, 
business,  and  accounts  of  the  whole  line  and  of  all  other  matters  pertaining  thereto. 

The  extension  of  new  lines  and  the  addition  of  branch  lines  shall  be  carried  out  liy 
the  administration  offices  concerned. 

4.  Railway  administration  offices  shall  establish  the  following  departments  for  the 
management  of  the  affairs  listed  in  article  3:  (1)  General  department,  (2)  traffic 
department,  (3)  engineering  department,  (4)  locomotive  department,  and  (5)  accounts 
department. 

These  departments  may,  according  to  special  cwcumstances  existing  in  a  particular 
administration  office,  be  combined,  or  the  duties  of  a  particular  department  may  be 
attended  to  by  an  officer  of  another  department. 

5.  Railway  construction  offices  shall  nave  charge  of  the  siu^ey,  construction,  estab- 
lishment, and  accounts  of  the  whole  line  and  of  all  matters  pertaining  thereto. 

In  case  traffic  is  commenced  on  one  section  before  the  construction  of  the  whole  line 
is  completed,  the  traffic  business  shall  be  managed  by  the  construction  office.  Upon 
the  completion  of  construction  work  the  construction  office  shall  be  changed  to  an 
administration  office. 

(>.  Railway  construction  offices  shall  establish  the  following  departments  for  the 
management  of  the  affairs  listed  in  article  5:  (1)  General  department,  (2)  engineering 
department,  and  (3)  accounts  department. 

Construction  work  may  be  divided  into  sections  and  a  construction  department 
cieated. 

The  proATsions  given  in  paragraph  2  of  article  4  may  be  applied  to  railway  construc- 
tion offices. 

Upon  the  commencement  of  traffic  on  any  one  section  a  traffic  department  may  l)e 
estaolished  for  the  management  of  tliat  business. 

7.  The  officers  of  an  administration  office  or  a  construction  office  shall  be  as  follows: 
Director,  assistant  director,  chief  of  construction  department,  chiefs  of  departments, 
chiefs  of  Bubdepartments,  general  officers,  chiefs  of  sections,  assistant  chiefs  of  sections, 
station  masters,  assistant  station  masters,  chiefs  of  train  squads,  chief  engineer, 
engineers,  engineering  assistants. 

There  are  chiefs  and  assistant  chiefs  of  sections  in  the  traffic,  engineering,  and  loco- 
motive departments.  There  are  engineera  and  engineering  assistants  in  the  engineer- 
ing and  locomotive  departments. 

The  officers  listed  in  paragraph  1  may  be  appointed  according  to  the  individual  re- 
quirements of  the  railway  offices. 


Il4: 


lAILWAY  MATERIALS.,  EQUIPMENT,  AND  SUPPLIES. 


» 


8.  The  director  of  a  railway  shall  be  appointed  by  the  Minister  of  Communications 
and  iluill  receive  bis  orderefrom  the  Minwter  of  Conmmnications  regarding  all  matters 
concemiiig  his  itilway  and  shall  have  supervision  of  all  subordinate  oflficere  under  him. 

9.  The  asilatiiit  director  of  a  railway  shall  be  appointed  by  the  Minister  of  Commu- 
nications tO'  aniBt'  the  director  in  the  'management  of  affain,. 

10.  The  chief  engineer,  chief  of  consitraction  department,  and  chiefs  of  departments 
shall  be  appointed  by  the  Minister  of  Communications  and  shall  ol>ey  the  orders  of 
their  superior  officers  in  the  management  of  the  affairs  of  their  respective  departments. 

11.  Chiefs  of  BUbdepurtnients,  engineers,  and  chiefs  of  sections  shall  be  appointed 
bv  the  Minister  of  Conunnnicationfl  upon  the  recomm'en'dation  of  the  director  and  shall 
ooey  the  orders  of  their  superior  officers  in  the  performance  of  their  respective  duties. 

12.  Genenll  officers,  anistant  chiefs  of  sections,  station  masters,  assistant  station 
masters,  and  engineering  aiiiittants  shall  be  appointed  by  the  director,  but  all  such 
appointments  shall  be  reported  to  the  Minister  of  Communications  for  record. 

13.  Kailway  administration  offices  and  railway  construction  offices,  according  t«  the 
length  of  the  line  and  the  amount  of  busiu'ess,,  shall  be  classified  as  first-class,  second- 
ckfis,  or  third-cla.is  officei.  The  grading  of  these  offices  and  the  number  of  officers  in 
them  m^ill  'be  deined  in  a  separate  ta'ble. 

14.  Railway  administration  and  construction  offices  may  employ  such  clerks  and 
wiiteni  aS'  niay^  be  'required. 

15.  K.Milations  i^overning  the  appoinlaifint  of  officers  of  Government  railway  offices, 
their  .grading,  'salaries,  and  the  employment  of  clerks  and  writers,  'will  be  promulgated 
ee'parately. 

16.  Any  provisionii  in  these  regnlations  that  may  be  in  conflict  with  mandates  or 
agreements  concerning  Government  railways  may,,  be  considered  as  void  in  these 
speciiii:  'CSDeB* 

17.  These  regulations  shall  take  effect  one  month  from  the  date  of  promulgation. 

The  salaries  of  officers  are  governed  by  regulations  issued  by  the 
Ministry  of  Commxinications.  Station  masters  (station  agents),  as- 
sistant  station  masters,  and  chiefs  of  train  squads  (train  conductors) 
are  ranked  as  officials.  The  following  is  a  translation  from  the 
Chinese  text  of  the  regulations  now  m  effect  on  the  Government 
railways,  issued  under  date  of  October  20, 1916,  and  effective  Novem- 
ber 1  of  that  year: 

1.  The  salailefi  of  all  officers  of  Government  railways,  except  those  engaged  under 
contmctB,  ahall  be  paid  in  accordance  with  these  regulations. 

2.  The  salaries  of  officers  of  Government  railways  shall  be  divided  into  48  grades,  in 
accordance  with  the  form  showing  the  grading  o!  monthly  salaries. 

3.  Officers  of  Government  railways  are  classified  as  follows: 

Officers  of  first-class  offices  shall  be  paid  according  to  classification  No.  1. 
Officers  of  second-ckss  offices  shall  be  paid  according  to  classification  No.  2. 
Officers  of  third-class  offices  shall  be  paid  according  to  classification  No.  3. 

4.  The  grading  of  directora,  aaeifltant  direct*)rs,  chief  engineers,  chiefs  of  construc- 
tion departmenta,  chiefs  of  traffic,  locomotive,  engineering,  and  accounts  departments 
shall  be  determined  by  the  Minister  of  Communications.  The  grading  of  chiefs  of 
subdepartmentB,  engineers,  and  chiefs  of  sections  shall  be  determined  by  the  Minister 
of  Communications  on  the  recommendation  of  the  director.  The  grading  of  general 
officers,  assistant  chiefs  of  sections,  station  masters,  assistant  station  masters,  chiefs  of 
train  squads,  and  en^eerin§  assistants  shall  be  determined  by  the  director,  but  shall 
be  reported  to  the  Minister  of  Communications  for  record. 

6.  In  the  grading  of  officers  of  Government  railways  the  Minister  of  Communications 
or  the  directors  shall  consider  the  work  of  the  officer,  his  cjualifications,  his  performance 
of  duty,  and  the  results  attained  in  his  work.  Promotion  above  the  twenty-seventh 
grade  will  not  be  made  for  service  of  less  than  one  year,  and  below  the  twenty -seventh 
grade  for  lesa^  than,  half  a  year's  service.  .  „ 

The  directors  shall  report  to  the  Minister  of  Communications  all  promotions  of  officers 
unc'erthem. 

6.  Directors,  assistant  directors,  chiefs  of  construction  departments,  and  chief  engi- 
neers may  be  given  special  allowances.  The  amounts  shall  be  determined  by  the 
Minister  of  CommunicationB  b«t  shall  not  exceed  hall  a  month's  salary. 

7.  In  the  matter  of  traveling  tllowances  the  directors  shall  follow  the  rules  as  fixed 
by  the  Ministry  of  Finance  governing  the  traveling  expenses  of  Government  officials. 

8.  There  shall  be  detailed  regnktions  governing  the  payment  of  salariei  and  deduc- 
tion of  salary  for  absence. 

©.  These  regulationi  shall  take  effect  from  November  1. 


Special  Agents  Series  No.  180. 


FIG.  7.— TYPICAL  WAY  STATION   ON  THE  GERIVIAN-BUILT  RAILWAYS  IN  CHINA. 


FIG.  8.— TYPICAL    WAY    STATION    ON    THE   CHINESE-BUILT    PEKING-SUIYUAN 

RAILWAY. 


INTENTIONAL  SECOND  EXPOSURE 


I 


-•J* 


•Ml 


64  RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 

8.  The  director  of  a  railway  sball  be  appointed  l)y  the  ^rinister  of  Commimicationa 
and  flhall  receive  his  orders  from  the  Minister  of  Communications  regarding  all  matters 
concerning  his  railway  and  ehall  have  eupervision  of  all  siil;ordinate  officers  under  him. 

9.  The  assistant  director  of  a  railway  shall  lie  appointed  by  the  Minister  of  Commu- 
nications to  assist  the  director  in  the  management  of  affairs. 

10.  The  chief  engineer,  chief  of  construction  department,  and  chiefs  of  departments 
shall  be  appointed  by  the  Minister  of  Communications  and  shall  obey  the  orders  of 
their  superior  officers  in  the  management  of  the  affairs  of  their  respective  departments. 

11.  Chiefs  of  sulidepartments,  engineers,  and  chiefs  of  sections  shall  be  appointed 
Ity  the  Minister  of  Communications  upon  the  recommendation  of  the  director  and  shall 
obey  the  orders  of  their  superior  officers  in  the  performance  of  their  respective  duties. 

12.  General  officers,  assistant  chiefs  of  sections,  station  masters,  assistant  station 
masters,  and  engineering  assistants  shall  be  appointed  by  the  director,  but  all  such 
appointments  shall  he  reported  to  the  Minister  of  Communications  for  record. 

J3.  Railway  administration  offices  and  railway  construction  offices,  according  to  the 
length  of  the 'line  and  the  amount  of  business,  shall  l>e  classified  as  first-class,  second- 
class,  or  third-class  offices.  The  grading  of  these  offices  and  the  numlier  of  officers  in 
them  will  be  defined  in  a  separate  table. 

14.  Railway  administration  and  construction  offices  may  employ  such  clerks  and 
■writers  as  may  be  required. 

15.  Regulations  governing  the  appointment  of  officers  of  Government  railway  offices, 
their  grading,  salaries,  and  the  employment  of  clerks  and  writers,  will  be  promulgated 
separately. 

16.  Any  provisions  in  these  regulations  that  may  l)e  in  conflict  Avith  mandates  or 
agreemen'ts  concerning  Government  railways  may  be  considered  as  void  in  these 
8i>eciaJ  cases. 

17.  These  regulaticns  shall  take  effect  one  month  from  the  date  of  promulgation. 

Tlio  salaries  of  ofHeers  are  governed  by  regulations  issued  by  the 
inistry  of  Communieations.  Station  masters  (station  agents),  as- 
sistant'station  masters,  and  chiefs  of  train  squads  (train  conductors) 
are  ranked  as  officials.  The  following  is  a  translation  from  the 
Chinese  text  of  the  regulations  now  in  effect  on  the  Government 
railwaj's,  issued  under  date  of  October  20, 1916,  and  effective  Novem- 
ber 1  of  that  vear: 

1.  The  salaries  of  all  officers  of  Government  railways,  except  those  engaged  under 
contracts,  shall  be  paid  in  accordance  with  these  regulations. 

2.  The  salaries  of  officers  of  Government  railways  shall  be  divided  into  48  grades,  in 
accordance  with  the  form  showing  the  grading  of  monthly  salaries. 

3.  Officers  of  Go\'ernment  railways  are  classified  as  follows: 

Officers  of  first-class  offices  shall  be  paid  according  to  cla&siti cation  No.  1. 
Officers  of  second-class  offices  shall  be  paid  according  to  classification  No.  2. 
Officers  of  third-class  oftices  shall  l)e  paid  according  to  classiii cation  No.  3. 

4.  The  grading  of  directors,  assistant  directors,  chief  engineers,  chiefs  of  construc- 
tion departments,  chiefs  of  trafiic,  locomotive,  engineering,  and  accounts  departments 
shall  be  determined  by  the  Minister  of  Communications.  The  grading  of  chiefs  of 
sulidepartments,  engineers,  and  chiefs  of  sections  shall  be  determined  by  the  Minister 
of  Communications  on  the  recommendation  of  the  director.  The  grading  of  general 
officers,  assistant  chiefs  of  sections,  station  masters,  assistant  station  masters,  chiefs  of 
train  squads,  and  engineering  assistants  shall  be  determined  by  the  director,  but  shall 
lie  reported  to  the  Minister  of  Communications  for  record. 

5.  Jn  the  grading  of  officers  of  Government  railways  the  Minister  of  Communications 
or  the  directors  shall  consider  the  work  of  the  officer,  his  cjualifications,  his  performance 
of  diitv,  and  the  results  attained  in  his  w^ork.  Promotion  above  the  twenty-seventh 
grafle  will  not  be  made  for  service  of  less  than  one  year,  and  below  the  twenty-seventh 
grade  for  less  than  half  a  year's  service. 

The  directors  shall  report  to  the  Minister  of  Communications  all  promotions  of  officers 
uiu^er  them.  ,    ,  .  , 

t>.  Directors,  assistant  directors,  chiefs  of  construction  departments,  and  chief  engi- 
neers may  be  given  special  allowances.  The  amounts  shall  be  determined  by  the 
Minister  of  Communications  but  shall  not  exceed  half  a  month's  salarj-. 

7.  In  the  matter  of  traveling  allowances  the  directors  shall  follow  the  rules  as  fixed 
by  the  Ministry  of  Finance  governing  the  traveling  expenses  of  Government  officials. 

'8.  There  shall  be  detailed  regulations  governing  the  payment  of  aalariea  and  deduc- 
tion of  salary  for  absence. 

9.  These  regulations  shall  take  effect  from  November  1. 


Special  Agents  Series  No.  180. 


*-r 


I 


FIG.  7.— TYPICAL  WAY  STATION   ON  THE  GERMAN-BUILT  RAILWAYS  IN  CHINA. 


I 


FIG.  8.— TYPICAL    WAY    STATION    ON    THE    CHINESE-BUILT    PEKING-SUI YUAN 

RAILWAY. 


if 


CHIN-A. 


65 


special  Agents  Series  No.  180. 


The  monthly  salaries  of  officers  of  Government  Railways  are: 


FIG.  9.— OVERHEAD   FOOTBRIDGE  BETWEEN  TRACKS  AT  TSINANFU   ON  THE 

TIENTSIN-PUKOW   RAILWAY. 


FIG.  10.— OVERHEAD   FOOTBRIDGE  BETWEEN  TRACKS  AT  TANGSHAN  ON 

THE    PEKING-MUKDEN    RAILWAY. 


FIG.  11.— TYPICAL  CHINESE  GRAVEYARD  AT  TANGSHAN. 


Grade. 

Amount. 

Grade. 

Amount. 

Grade. 

Amoimt. 

Grade. 

Amount. 

1             

Mex. 
dollars. 
800 
750 
700 
650 
600 
550 
500 
475 
450 
425 
400 
380 

13 

Mex. 
dollars. 
360 
340 
320 
300 
285 
270 
255 
240 
2?5 
210 
200 
190 

25 

Mex. 

dollars. 

180 

170 

160 

150 

140 

130 

120 

110 

100 

95 

90 

85 

37 

Mex. 
dollars. 

m 

2            

14 

26 

38 

75 

3             .  .. 

15 

27 

39 

70 

4 

16 

28 

40 

65 

5       

17 

29 

41 

60 

6         

18 

30 

42 

55 

7           

19 

31 

43 

fiO 

8               

20 

32 

44 ^. 

45 ^. 

'45 

9 

21 

33 

40 

10              -  .. 

22 

34 

46 

35 

11             

23 

35 

47 

30 

12 

24 

35 

48 

25 

The  following  table  shows   the  classification  of  salaries  on  the 
Chinese  Government  R ailways : 


Employees. 


Directors 

Assistant  directors 

Chiefs  of  construction  departments 

Chiefs  of  departments 

Chiefs  of  suodepartments 

General  officers 

Chiefs  of  sections 

Assistant  chiefs  of  sections 

Station  masters 

Assistant  station  masters 

Chiefs  of  train  squads 

Chie  f  engineers 

Engineers 

Engineering  assistants 


Classifica- 

Classifica- 

tion No.  1. 

tion  No.  2. 

Grade. 

Grade. 

Ito  3 

4  to    7 

5  to  7 

7  to  13 

5  to  7 

7  to  13 

8  to  14 

11  to  16 

16  to  23 

20  to  26 

25  to  43 

27  to  44 

15  to  35 

18  to  36 

25  to  43 

27  to  44 

28  to  43 

30  to  36 

37  to  46 

39  to  48 

37  to  46 

39  to  48 

Ito  3 

4  to   7 

11  to  30 

14  to  32 

25  to  43 

27  to  44 

Classifica- 
tion No.  3. 


Grade. 
7  to  12 
13  to  IS 
13  to  18 
16  to  20 
23  to  28 
29  to  45 
20  to  37 
29  to  45 
33  to  48 
39  to  48 
39  to  48 
7  to  12 
16  to  33 
29  to  45 


Note.— Chiefs  of  shops  in  railways  of  the  first  class  may  be  graded  up  to  the  eleventh  grade,  those  in 
railways  of  the  second  class  to  the  fifteenth  grade,  and  those  in  railways  of  the  third  class  to  the  ei^teenth 
grade. 

For  each  of  the  principal  Chinese  Government  Railways  the  Min- 
istry has  outlined  a  detailed  administrative  organization.  The 
following  is  a  translation  from  the  Chinese  text  ot  the  regulations 
promulgated  October  20,  1916,  for  the  Peking-Mukden  Railway. 
These  are  similar  to  the  regulations  issued  for  the  other  lines,  such 
as  the  Tientsin-Pukow  and  Peking-Hankow: 

1.  The  Peking-Mukden  Railway  administration  office  shall  have  charge  of  the 
railway  line  between  Peking  and  Mukden  and  its  branch  lines. 

2.  The  Peking-Mukden  Railway  administration  shall  have  charge  of  such  matters 
as  are  outlined  in  article  3  of  the  regulations  governing  the  organization  of  Govern- 
ment railways. 

3.  The  PeWMukden  railway  administration  shall,  in  accordance  with  the  pro- 
visions  of  article  4  of  the  regulations  governing  the  organization  of  Government  rail- 
ways, have  the  following  departments:  (1)  General  department,  (2)  traffic  depart- 
ment, (3)  engineering  department,  (4)  locomotive  department,  and  (5)  accounts 
department. 

4.  The  general  department  shall  be  divided  into  the  following  subdepartments 
for  the  distribution  of  work: 

The  secretarial  department  shall  have  charge  of  all  clerical  work,  files,  confidential 
matters,  the  seal,  the  receipt  and  dispatch  of  correspondence,  and  the  efficiency 
records  of  all  employees  of  the  railway. 

106229"— 19 5 


INTENTIONAL  SECOND  EXPOSURE 


CHINA. 


65 


Special  Agents  Series  No.  180. 


Tlie  montlily  salaries  of  officers  of  Government  Railways  are: 


f  .■■,•# 


FIG.  9.— OVERHEAD   FOOTBRIDGE  BETWEEN  TRACKS  AT  TSINANFU   ON  THE 

TIENTSIN-PUKOW   RAILWAY. 


1 

I 


FIG.  10.— OVERHEAD   FOOTBRIDGE  BETWEEN  TRACKS  AT  TANGSHAN  ON 

THE    PEKING-MUKDEN    RAILWAY. 


FIG.  11.— TYPICAL  CHINESE  GRAVEYARD  AT  TANGSHAN. 


Grade. 

Amount. 

Grade. 

Amount. 

Grade. 

1 
Amount.   | 

Grade. 

Amount. 

1 

Mex. 

dollars. 
800 
750 
7(M) 
660 
600 
550 
5(X) 
475 
450 
425 
400 
380 

1.? 

Mcx. 
dollars. 
360 
34!) 
320 
300 
285 
270 
255 
240 
225 
210 
200 
190 

25 

Mex.       ': 
dollars. 
ISO 
170  ■ 

ir.0 

150 
140  I 
130 
120  ! 
110  ' 
100  1 
95 

90   ; 

85  I 

37 

38 

30 

Mex. 
dollars. 

80 

2 

14 

26 

75 

:* 

15  

27 

70 

4 

16 

2« 

40 

41 

65 

n 

1  17            .   .. 

29 

60 

6 

is:     .:.. 

30 

42 

55 

7 

'  19 

31 

43 

50 

8 

20.: 

32 

44 

45 

•) 

21 

33 

45 :. 

40 

10 

22 

34 

46 

35 

n 

23 

35 

47 

30 

12 

24 

3G 

48 

25 

1       

i 

The  following  table  shows   the  classification  of  salaries  on  the 
Chinese  Government  Railways: 


Employees. 

Classifica- 
tion No.  1. 

Classifica- 
tion No.  2. 

Classifica- 
tion No.  3. 

Dirottors 

Grade. 

Ito  3 

5  to    7 

5  to   7 

8  to  14 

16  to  23 

25  to  43 

15  to  35 

25  to  43 

28  to  43 

37  to  4f. 

37  to  46 

Ito   3 

11  to  30 

25  to  43 

Grade. 

4  to    7 

7  to  13 

7  to  13 

11  to  16 

20  to  26 

27  to  44 

18  to  38 

27  to  44 

30  to  36 

39  to  48 

39  to  48 

4  to   7 

14  to  32 

27  to  44 

Grade. 
7  to  12 

Asf^istant  directors 

13  to  16 

Chie  f s  of  constmction  departments 

13  to  16 

Chiefs  of  departments 

16  to  20 

Chiefs  of  su  .)departmcnts 

23  to  28 

General  officers 

29  to  45 

Chiefs  of  sections 

20  to  37 

Assistant  chiefs  of  sections 

29  to  45 

Station  masters 

33  to  48 

Assistant  station  masters 

39  to  48 

Chiefs  of  train  squads 

39  to  43 

Chief  engineers 

Engineers 

7  to  12 
16  to  33 

Engineering  assistants .' 

29  to  45 

Note.— Chiefs  of  shops  in  railways  of  the  first  class  may  be  graded  up  to  the  eleventh  grade,  those  in 
railways  of  the  second  class  to  the  fifteenth  grade,  and  those  in  railways  of  the  third  class  to  the  eighteenth 
grade. 

For  each  of  the  principal  Chinese  Government  Railways  the  Min- 
istry has  outlined  a  detailed  administrative  organization.  The 
folloAving  is  a  translation  from  the  Chinese  text  oi  the  reo:ulations 
promulgated  October  20,  1916,  for  the  Peking-Mukden  Railway. 
These  are  similar  to  the  regulations  issued  for  the  other  lines,  such 
as  the  Tientsin-Pukow  and  Peking-Hankow: 

1.  The  Peking-Mukden  Railway  administration  office  shall  have  charge  of  the 
railway  line  between  Peking  and  Mukden  and  its  branch  lines. 

2.  The  Peking-Mukden  Railway  administration  shall  have  charge  of  such  matters 
as  are  outlined  in  article  3  of  the  regulations  governing  the  organization  of  Govern- 
ment railways. 

3.  The  Peking-Mukden  railway  administration  shall,  in  accordance  with  the  pro- 
visions of  article  4  of  the  regulations  governing  the  organization  of  Government  rail- 
ways, have  the  following  departments:  (1)  General  department,  (2)  traffic  depart- 
ment, (3)  engineering  department,  (4)  locomotive  department,  and  (5)  accounts 
department. 

4.  The  general  department  shall  be  divided  into  the  following  subdepartments 
for  the  distribution  of  work: 

The  secretarial  department  shall  have  charge  of  all  clerical  work,  files,  confidential 
matters,  the  seal,  the  receipt  and  dispatch  of  correspondence,  and  the  efficiency 
records  of  all  employees  of  the  railway. 

106229°— 19 5 


66 


MIIiWAY  MATKKIALS',  BQUIPMEHT,  A¥D  SUPPLIES. 


"i; 


CHINA. 


67 


/i 


The  stores  departmeEt  ahal!  have  chaige  of  the  piireliaee  and  digtribution  of  stores. 
1  He  tomalation  department  shall  be  reeponsible  for  oompiktions  and  translationg 

and^  all  matters  of  negotiation  with  foreignere, 

,T**^2J*'"*™?"'i^P^"*?"*.**^'-'  ^^  chM^  of  special  transportation,  improvement 

of  tralic,  and  other  regular  bnaineai. 

The  compilation  department  sliall  have  charge  of  atatiatica,  reenlationa  compilations 
and  investigations.  ■  ' 

The  electrical  department  shall  have  charge  of  the  telegraph  and  telephone  systemi 

01  tne  jjiiiway* 

The  police  department  shall  be  responsible  for  the  policing  and  medical  service  of 

the  railway. 

Thegeneal-affaire  department  shall  'have  charge  of  all  miscellaneous  general  mattera 
*°5i     ?r  '      ®'  matters  not  under  the  chaige  of  other  departments. 

The  Hsinho  Stores  department  shall  be  responsible  for  the  care,  receipt,  issue,  and 
niartang  of  materials. 

4i,''-j^®v'^**^  department  shall  be  divided  into  the  following  subdepartments  for 

tne  amriontion  of  work: 

The  secretarial  subdepartment  sh^all  have  charge  of  the  ilea,  clerical  work,  and  the 
efficiency  records  of  the  members  of  the  department  not  under  the  control  of  any 

other  depart.ment. 

The  tnmsportation  department  shall  have  charge  of  the  business  of  transportation. 

cats,,  and  water  transportation.  f^     ^  uu, 

The  checking  department  shall  have  charge  of  the  checking  of  mile««e  and  passenger 

ana  .freight  tickets.  ^         *-         © 

Tiiffic  sectioM  and  siibiectioEa  shall  be  responsible  for  all  tmflic  mattew  in  their 
leAective  seetiona 

Stalipna  shall  'he  :rw!pon8ible  for  all  matters  in  th6ir  respective  districts. 
J  ®l^^f.  enpneerinff  department  shall  be  divided  into  the  following  departments 

iJT  the  'distrihotion  of  work: 

The  secretarial  department  shall  liave  charge  of  the  files,  clerical  work  of  the  depart- 
ment, and  the  efficiency  records  of  the  members  of  the  department  not  under  the 

eoo^trol  of  any  other'  department. 

The  construction  depwrtment  shall  have  charge  of  the  planning,  mappinir.  and 
•3Cecntion  of  work  and  of  all 'ttiaterials  of  construction  and  tacid. 

EMineering  di\iBion8  and  snbdiwiona  ahai  ho  fesponaible  for  the  engineering 
work  IE  'their  respective  divisions.  en 

The  Shanhaikwan  Iron  WorbiioM  shall  be  iresponsible  for  the  making  of  all  iron 
mm  stieel  machmery  and  parti'  and  for  the  'repair  of  bridges. 

7.  The  locomotive  department  shall  be  divided  into  the  following  subdepart- 
■ments  for  the  distnbution  of  work: 

Th«  secretarial  department  shall  have  chaige  of  the  files  and  clerical  work  of  the 
Hiepaitnaent  .and  the  .efficiency  n!cord.8  of  the  mem.her8  of  the  depar'tment  not  under  the 
control  of  any  •other  department... 

The  works  department  shall  have  charge  of  the  planning,  mapping,  and  execution 

of  work:  and  loconjotives. 

The  Tangshan  workahO'ps  shii.Il  be  .resoonsib.le  for  the  repair'  and  erection  of  cars, 
locomotoves,  and  machinery  and  the  'tiaming'  of  mechanicaf  workmen. 

The  Kaopantie  branch  workshops  shall  be  responsible  for  the  making,  repair,  and 

erection  of  cais^and  .madiMiery.  '^ 

_Locomotive  sectioiis  and  subsections  shall  be  responsible  for  all  locomotive  affairs 

within  ^  their  respective  sections. 

8.  The  accounts  department  shall  be  divided  into  the  following  subdepartments 

.for  'the  diateibntion  of  work: 

The  secretarial  department  shall  have  chiiig©  of  the  files  and  clerical  work  of  the 
department  and  the  efficiency  'necords  of  the  'members  of  the  department  not  under 
the  control  of  any  other  department. 

The  accountiM  department  shall  have  charge  of  the  budgets  and  statements  of 
accounts,  the  anditiiig  of  accounts,  the  transfer  of  funds,  and  account  books. 

The  caAier  departneiit  ahall  be  rwponsiWe  for  the  receipt  and  disbursement  of 
moneys  of  the  railway. 

The  checking  department  shall  check  all  passenger  and  freight  tickets  and  shall  bo 

responahle  for  'their  prin'ting. 

9.  There  ahai  be  one  chief  to  each  subdepartment  provided  for  in  these  regulations. 

and  one  su'permtendent  m  charee  of  each  workahop. 

*-  ^^-  T^fJ^tJe®  and  number  of  officera  of  the  Peking-Mukden  Ettlway  administra- 
tion shall  be  .as  Mated  below. 


11.  Foreign  employees  of  the  Peking-Mukden  Railway  administration  shall  per- 
form such  duties  as  are  specified  in  their  contracts.  In  case  of  a  chanj^e  or  extension 
of  contract,  tho  approval  of  the  Minister  of  Communications  must  first  be  obtained. 

In  case  Chinese  employees  are  engaged  in  fulfillment  of  conditions  of  agreementj 
with  the  approval  of  the  Minister  of  Communications,  where  the  positions  are  not 
provided  in  the  regulations  governing  the  organization  of  Government  railways,  such 
employees  shall  retain  their  old  titles  in  the  performance  of  their  respective  duties. 

12.  The  detailed  regulations  for  the  ofl^ce,  subdepartments,  workshops,  and  police 
of  the  Peking-Mukden  Railway  administration  shall  be  prepared  by  the  director 
and  submitted  to  the  Minister  of  Communications  for  approval. 

13.  These  regulations  ahall  take  effect  from  the  date  of  promulgation. 

The  list  of  titles  and  number  of  officers  in  the  Peking-Mukden 
Bailwaj  administration  are  as  follows:  Director,  1;  assistant  direc- 
tor, 1;  chiefs  of  departments,  not  more  than  5;  superintendents  of 
workshops,  4;  chiefs  of  subdepartments,  not  more  than  19;  general 
officers,  not  more  than  100;  chiefs  of  sections,  1  for  each  section; 
chiefs  of  subsections,  1  for  each  subsection;  station  masters,  1  for 
each  station;  assistant  station  masters,  not  more  than  60;  chiefs  of 
train  squads,  not  more  than  70;  chief  engineer,  1;  engineers,  not 
more  than  9;  eDgineering  assistants,  not  more  than  16. 

It  will  be  noticed  from  the  aboTe  that  this  organization  is  typical 
of  the  so-called  departmental  organization,  or  what  the  writer 
termed  the  "branch '^  organization  in  his  Australasian  report  (Special 
Agents  Series  No.  156).  This  remark  will  apply  also  to  the  Japanese 
Imperial  Eailways  and  the  South  Manchuria  Kailway  Co.  in  South 
Manchuria  and  Chosen  (Korea). 

Plll€HASE  OP  STORES  BY  RAILWAYS. 

In  each  instance  the  purchase,  care,  and  distribution  of  stores  are 
handled  by  a  subbranch  of  the  general  department  and,  as  a  rale, 
this  subbranch  is  a  part  of  or  directly  connected  with  the  financial 
subbranch. 

On  account  of  the  great  distance  from  the  source  of  supply,  it  is 
a  matter  of  ^eat  importance  to  carry  such  stores  as  will  actually  be 
needed,  particularly  m  emergencies,  and  at  the  same  time  not  have 
an  unwarranted  amount  of  money  tied  up  in  a  supply  of  parts  that 
may  become  obsolete  in  the  course  of  time.  The  considerations  with 
respect  to  stores  constitute  one  of  the  very  potent  influences  tendin(r 
toward  the  longer  life  of  equipment  that  prevails  in  all  the  Far 
Eastern  countries.  The  much  more  complex  method  of  payment 
for  stores,  with  all  the  involved  questions  of  exchange,  is  alone  suffi- 
cient reason  for  requiring  the  stores^branch  to  be  closely  supervised 
by  the  financial  branch. 

There  is  a  growing  practice  of  advertising  for  tenders  covering 
rMuirements  by  the  various  lines,  and  the  following  are  typical  of 
advertisements  that  are  now  frequently  appearing  in  the  Peking, 
Shanghai,  Tientsin,  and  Hankow  papers: 

KiN-HAjf  Railway  Invites  Tkndbrs  for  Supply  of  Steel  Bbibges  amd  Miscbii- 

LANEOU8  Materials. 

Janu Jrjvms'™'  ^^  ^^^^  °*  ^  "'*°'^  '*^  ^*^^  '^"^^es  to  be  opened  oo  the  5th  of 

op|ie^d  SuZ^Jst  oM^^^^  °^"'"""'^  ^''  "'^^^"^^  ^""^"^  "^  ^ 

^hZ^o^}noZf^^''''lL^^^^  ^'p^^^  Kin-Han  RaUway  (Technical  Secretariat), 
mar  be  oS^^  ''''  ^^^  ^^\  ""^  November,  plans,  drawings,  and  g)ecificationa 


BMLWAY  MATERIALS,  EQ:UIPMENT,  AND  SUPPLIES. 

Turn  'TiiMTBiN-PuKow  Railway  .Admiuistratioii. 

Notiication  No'.  2'65. 

Imtitatio^  or  Tekbehs  (138/2). 

Tbc  public  ii:  hereby  notified  lhiit'teiKier»  are  invited  for  the  mipply  to  Ma  railway 
of  the  followinf  qtiantities  of  eleepein,  bridge  tiee  and  crowing  timbers,  \dz: 

One  hundred  and  wvenly  thonaiind  pieces  of  first-clase  Japanese  oak  or  other  hard- 
wood of  similar  quality  railway  sleepera  to  be  delivered,  cost,  insurance,  and  freieht, 
mdudinf  custtftti  duty  and  war  risk,  at  our  Ghentwigchuang  wharf. 

Three  hundred  and  seventy-nine  pieces  of  firet-class  Japanese  oak  or  hailin  or 
Oregon  pme  or  other  hardwood  of  similar  quality  crossing  timbers  to  be  delivered: 
cost,  insurance,  and  freight,  including  customs  duty  and  war  risk,  at  our  Ghentang- 
chuang  wharf. 

Thirty  thousand  pieces  of  first-claas  Japanese  oak  or  other  hardwood  of  similar 
quality  railway  sleepers  to  be  delivered,  cost,  insurance,  and  freight,  including 

cuitoma  duty  and  war  risk,  at  our  Pukow  wharf. ' 

^  One  thouamd  five  hundred  pieces  of  first-class  Japanese  oak  or  other  hardwood  of 
similar  quality  bridge  ties  to  be  delivered,  coat,  insurance,  and  freight,  including 
customs  duty  and  war  risk,  at  our  Pukow  wharf. 

One  thousand  two  hiuidred  pieces  of  first-class  Japanese  oak  or  hailin  or  Oregon 
pine  or  other  hardwood  of  similar  quality  cwesing  timbers  to  be  delivered,  'SmL 
inwtrance,  and  freight,  including  customs  duty  and  war  risk,  at  our  Pukow  wharf. 

Tender  forms  attached  with  specifications  and  full  particulara  may  be  obtained 
free  of  charge  on  application  to  the  head  ofiice  of  the  railway,  Tientsin,  Hopei. 

TendeiB  must  be  signed,  sealed,  and  marked  **  tender  for  the  supply  of  sleepers. 
bridge  ties,  and  crossing  timbens"  and  addressed  to  the  managing  director,  Tientsin- 
Pukow  Railway  Administration,  Tientaiu.  The  same  must  reach  the  above  address 
on  or  before  12  o'clock,  noon,  of  the  12th  day  of  November,  1917,  and  will  be  opened 
at  3  o'clock  m  the  afternoon  of  the  same  dav. 

The  (wder  or  orders  for  the  goods  wiU  be  given  to  the  tendering  firm  or  firms,  whose 
tmders:  have  been  .accepted,  not  later  than  the  26th  of  November,  1917,  during  which 
tiiiie  and  including  which  date  the  prices  of  all  tenders  must  hold  good. 

Mo  teDden  will  bo  entertaiiied.  ualeae  presented  within  the  time  given  and  made 
on,  the  fomia  'supplied  by  this^  railway. 

The  managing  director  does  not  bind  himself  to  accept  the  lowest  or  any  of  the 
lenders  aud  reserves  the  right  of  pkcing  the  order  in  lota. 

(S%ned)  8.  C.  Shu, 

_  Mrnmgmgmedor, 

_  .  ,  «     ,  *^  TimtMTh-Pttkow  MaUwtm  Atbmnistmtwn, 

TllNTSiN,  tsm  Ocioher,  1917. 

It  will  be  noticed  from  the  Peking-Hftukow  (Kin-Han)  advertise- 

inent  that  there  is  a  charge  for  the  specificationa  and  plans.  Such 
II  clifirgB  is  th0  genera!  practice  of  all  the  lines,  but  as  a  rule  specifica- 
tions are  fumished  without  charge  to  the  established  concerns  from 
which  It  is  desired  to  secure  bids.  The  second  item  of  the  Peking- 
Hankow  invitation  represents  the  first  instance  in  wMch  invitations 
have  been  issued  for  tenders  covering  miscellaneous  merchandise 
supplies.  It  is  probable,  however,  that  annual  or-even  two  or  three 
year  contracts  for  miscellaneous  merchandise  supplies  will  become  the 
rule  on  the  Oiinese  Government  Railways.  This  practice  prevails  on 
the  Australian  State  Kailways,  and  there  seems  to  be  a  decided  ten- 
dency for  government  owned  and  operated  railways  to  buy  their 
miscellaneous  merchandise  requirements,  so  far  as  practicable,  by 
this  method  of  purchase.  The  bridges  wanted  by  the  Peking-Hankow 
line  are  to  replace  the  considerable  number  of  bridges  lost  during  the 
unusual  fioods  in  the  summer  of  1917, 

OPERATING  MEfHODS. 

Tie  svstem  of  train-movement  control  is  the  "station-master 
method'   of  operation,  its  the  writer  termed  the  arrangement  em- 


CHINA. 


69 


''viI^IIBH^Vp' 


ployed  on  Australian  railways.  The  practice  of  putting  in  the  hands 
of  the  station  master  the  responsibility  for  the  movement  of  all  traffic 
is  even  more  pronounced  in  China  than  in  Australia.  It  may  be  said 
to  represent  the  adaptation  of  the  British  and  Continental  methods 
to  the  situation  in  China,  where  there  are  many  factors  in  labor  and 
class  conditions  that  justify  such  an  arrangement.  In  fact,  it  would 
probably  be  impossible  to  use  successfully  the  American  dispatching 
methods  with  the  train  crews  carrying  out  such  orders  without  other 
direction. 

All  employees  of  the  Cliinese  Government  Eailways  are  Chinese, 
except  for  a  lew  salaried  official  positions  that  are  filled  by  foreigners, 
usually  serving  under  definite  contracts.  Educated  Chinese  are 
employed  to  fill  many  of  the  salaried  official  positions,  but  the  less 
important  employees,  in  station,  train  staff,  and  similar  service,  have 
been  recruited  from  the  less-educated  classes,  and  they  require  educa- 
tion and  training  to  make  them  capable  railway  servants.  Therefore 
the  "station-master  method"  of  operation  seems  without  question  to 
be  the  most  desirable  practice  for  railways  in  the  Far  East,  and  it  is 
the  method  in  general  use.  There  is  no  doubt  that  this  method 
requires  more  men  and  is  less  expeditious  than  the  methods  in  vogue 
in  the  United  States,  particularly  in  the  running  of  passenger  trains, 
but  this  is  not  a  serious  handicap. 

SIGNALING. 

The  government  of  train  movements  is  usually  by  block  control. 
Some  kmd  of  staff  is  generally  in  use  on  single-track  lines  and  a  very 
large  percentage  of  all  the  mileage  is  single  track.  All  stations  where 
trains  may  meet  or  pass  are  provided  with  '"'station  loops,"  which 
are  really  very  short  stretches  of  double  track.  Separate  station 
platforms  are  provided  for  the  passenger  traffic  in  each  direction. 
At  the  more  important  stations,  particularly  at  junction  stations, 
the  main- track  switches  are  interlocked;  at  other  stations  interlocking 
of  various  degrees  of  completeness  is  provided;  while  at  some  stations — 
in  fact,  in  a  large  number  of  instances — only  hand-thrown  switches, 
locks,  and  signals  are  pirovided.  In  all  cases  the  direction  of  the  han- 
dling of  this  apparatus  is  imder  the  jurisdiction  of  the  station  master. 
The  method  of  signaling  is  usually  in  accordance  with  the  practices  of 
the  country  that  has  provided  the  loan  funds  for  building  the  line,  but 
in  the  mam,  the  general  practice  can  be  said  to  conform  approxi- 
mately to  the  British  Board  of  Trade  practice.  In  view  of  the  ex- 
gerience  in  Australia,  it  would  seem,  if  the  Chinese  Government 
Railways  should  be  able  to  make  their  practice  uniform  in  the  next 
few  years,  that  it  would  be  wise  for  them  to  adopt  the  American 
three-position,  thi-ee-speed  system  of  signaling.  It  is  also  probable 
that  the  arrangement  of  selective  telephones  with  central  control,  as 
mstalled  on  the  New  South  Wales  Railways,  could  be  adopted  with 
M^u  J  **^^^.^^*^*^g®  on  some  of  the  lines,  such  as  portions  of  the  Peking- 
Mukden  line,  where  the  traffic  is  growing  to  such  an  extent  as  to 
require  increased  capacity  of  the  present  single  track. 

Ihe  signaling  practice,  as  already  stated,  conforms  to  the  practice 
01  the  country  furnishing  the  loan  funds,  but  the  signaling  as  a  rule  is 
very  simple,  and  approaches  closely  the  British  Board  of  Trade  prac- 
tice.   J?igures  17  and  18,  facing  page  76,  show  typical  instaUations, 


n 


BAILWAY  MATERIAL,  BQIFIPMEXT,  A¥D  SUPPLIES. 


and  are  good  ©xamples  of  tE©  two  airais  placed  horizontaUy  on  sepa- 
rate dolls  instead  of  vertically  on  one  mast,  ,as  is  the  American  prac- 
tice. It  would  he  of  most  decided  advantage  if  all  tlie  Chinese  raU- 
ways  were  to  adopt  at  once  the  American  practice  instead  of  doing  so 
later  (m  they  probably  will)  at  a  considerable  cost.  It  will  bo  noticed 
m.^both  the  dlustrations  mentioned  above  that  the  signal  arms 
point  to  the  left,  because.  aE  the  roads  in  China  run  left-handed. 
The  block-working  apparatus  is  largely  of  British  manufacture. 

CONSTEUCTION  AND  MAINTENANCE  METHODS. 

All  the  pr©»nt  railways  have  been  built  almost  entirely  by  hand 
labor,  chiely  on  account  of  the  large  supply  of  cheap  and  industrious 
labor  in  all  parts  of  China.  This  applies  even  to  the  breaking  of  rock 
ballast,  which  has  been  done  bj  hand.  Bridge  masonry,  buildings, 
*****'^^J^  P^^^-^^w^s,  and  much  similar  work  has  been  contracted  for 
with  Chinese  subcontractore,  and  in  some  instances  this  procedure 
lias  been  followed  in  the  case  of  earth  and  rock  grading  work  (called 
m  CMna  "formation").  With  the  supply  of  good  cement,  stone,  and 
cshieap  jabor,  and  m  mew  of  the  scarcity  and  high  price  of  lumber, 
there  is  a  .growing  tendency  to  use  concrete  in  every  way  possible, 
particularly  as  mmi  Chinese  laborers  seem'  to  make  as  good  concrete 
workers,  as  stonem,asons. 

The  maintenance  methods  and  tools  are  much  the  same  on  the 
ieveral  railways.  The  following  data  furnished  bv  A.  C.  Clear, 
engineer  in  chief  and  general  manager  of  the  Shanghai-Nanking  and 
the  bhanghai-Hangchow-Ningpo  Railways,  and  m.  Ivon  Tuxford, 
maintenance  engineer  of  the  same  line,  are  fairiy  typical  of  all  the 
lines,  but  the  methods  are  probably  worked  out  iii  more  complete 
detaii  than  is  the  case  on  some  of  the  other  lines.  On  this  system  the 
engineer  in  chief  is  in  general  charge  of  roadways,  bridges,  buildings, 
etc.,  tlM  work  being  under  the  direct  charge  of  a  maintenance  engineer, 
mith  district  engmeera  in  charge  of  districts.  The  district  engineers 
have  assistant  engineers,  usually  in  charge  of  about  100  miles  of  line, 
and,  for  the  dwect  admiiustration  of  the  work,  these  assistant  engineers 
have  inspectors,  who  do  not  have  more  than  70  miles  of  line.  The 
mspectoi-s'  territory  is  divided  into  sections  of  about  15  miles,  and 
these  again  are  divided  into  subsections,  usuallv  of  5  miles.  There  is 
a  section  foreman  for  each  of  the  15-mile  sections,  a  gang  for  each 
5-mile  subsection,  and  a  flying  (extra)  gang  for  each  20  miles  of  line. 

The  regular  gangs  for  the  5-m,ile  subsections  consist  of  1  ganger 
(foreman),  2  leadmg  coolies,  10  coolies,  and  1  cook,  and  the  flying 
gangs  consist  of  1  ganger,  10  coolies,  and  1  cook.  Permanent  ^ans:- 
houses,  consisting  of  three  rooms  and  a  kitchen,  are  provided  for  the 
regular  gangs.  The  flying  gangs,  being  constantly  on  the  move, 
receive  m  Mex.  per  month  for  house  rent. 

The  followmg  are  the  rates  of  pay  for  tlio  above  gangs;  they  are 
approximately  the  same  as  are  paid  in  other  parts  of  CMiia  for  men 
of  equal  Qualifications:  Section  foreman,  $25  Mex.  to  |35  Mex.  per  ' 
month.    Subsection  gangs— Ganger   (foreman),   $15  Mex.  to  $20 
Mexrper  nionth;  leading  coolies,  110.50  Mex. ;  coolies,  $8  Mex. :  cooks. 

1.50  Mex. 
$9  Mex.; 


$5  Mex.;  level-crossing  keepers  (crosshig  watchmen),  $.6.i 
'*7^-^  ,/®'ngs— Ganger,  $21  Mex.  per  month;  coolies,  $ 

cook,  15  Mex. 


I 


CHINA.  71 

It  wiM  be  noticed  from  the  above  that  some  of  the  wages  are 
scaled.  The  section  foremen,  being  seasoned,  tried  men,  are  paid 
according  to  expenence.  The  development  of  this  force  and  the 
scale  of  pay  is  explained  m  the  following  excerpt  from  a  paper  by 
Mr.  Ivon  Tuxford,  published  in  the  1914-15  proceeding  of  the 
jfcingineermg  Society  of  China: 

Gaogera  are  mentioned  from  time  to  time  in  tbe  montWy  report  bv  the  divisional 
permanent  way  inspector,  and  if  no  complaint  has  been  recordeafor  six  months  thev 
receive  an  mcrea^  m  pay  of  $1  per  month,  and  m  long  as  the  section  is  maintained 
ZS^'^'^ri^L^  1??^  ""  ^  1?^*"  ""^  efficiency,  without  any  complaints  being 
^tfl  l^^r^  ""' ^^  per  month  every  SIX  months  is  given  until  tfie  maximum 
pay  for  a  ganger,  $20  per  month,  m  obtained.  Gangers  receiving  $20  per  month  are 
eligible  for  promotion  to  section  fcMfemen.    Leading  coolies  are  eligible  for  promotion 

foitTTO*^^'"^^^^"**  ""^^'^  ^^  ^^  monthly  report  against  gangers  are  dealt  with  aa 

af^H-j;^!  turning  out  the  png  in  time,  leaving  work  too  aoMi,  not  carrving  out  in- 
Btnictions  promptlj^,  a  lowing  coolies  to  neglect  their  work,  not  keeping' the  section 
neat  and  tidy,  or  similar  misdemeanors  gangers  are  punished  in  the  fi^t  case  by  a 
reduction  m  pay  of  $1  per  month;  second  case,  $2  per  month;  third  case,  dismissaf 

If.  liowew,  a  ganger  receives  good  reports  for  six  months  after  the  first  complaint 
he  receives  his  former  ^y,  and  such  complaint  does  not  stop  his  f  uither  ad^-ancement 
Alter  two  complamta  the  ganger  must  receive  good  reports  for  six  months  before 
Zh^oA^nS"^  t3\ir^  ^"^  temdnation  of  I2  months'  good  conduct  he  rev^^ 
Jl«!Lc.7?  V  ^l'  !"^  ^^  complaints  do  not  stop  his  further  advancement.  The 
1^1^  i?mTde  complaints  are  still  recorded  against  the  ganger  when 

an5  Kl7r;??^?f  ^*"'^^  ^^  ''^F®  is  medically  examined,  particularly  aa  to  eight 
»"«  heanng,  this  being  necessary  for  obvious  reasons  •«  "  ^ui, 

The  Sunday  holiday  has  also  been  introduced.  This  has  a  good  effect  on  thp  m^n 
?bi*^iir"\^  obtained,  by.  giving  them  this  day  off,  enabC^em  t^lcSk  aTex 
^m^  f^.T:.^^*^^-  ^1  relieving  the  monotony  of  continnoue  toick  work.  At  the 
same  time  inspection  of  track  on  Sundays  is  not  neglected,  the  line  beine  mtrol  «d 

^ol^nl^^,"^''^  ^"^^^^^  g^ger  and  second  leading  coolie;  third  Sunday! 

Each  section  is  patrolled  twice  a  day. 

The  section  foremen  make  surprise  visits  at  irregular  inten-als  to  see  whether  the 
S^^iW  Cd^v^;^^?  *^"  permanent-way  inspector  of  the  districTliro^kL  an 

^i^   Sunday  trip  to  see  that  the  patrol  work  is  being  properly  carried  out 

tid?^d  ut?J*5.^^±^^^  '""nt^^  *^^ ^^  ^^r>  their  sec^S n^t  and 

JMv  and  up  to  the  ret^mred  st^dard,  a»,  if  the  section  gets  out  of  order  or  dirtv  thro.wh 

day^frmon  A  a^^^^^  of  die  coolie  weanng  it.    Being  always  paid  on  the  sanie 

&TJJkTd*p^t^^^^^  -hat  time  to  leave 

with  thp  r>av  rWi'  a^    i^    nearest  stauon.     Ihe  permanent-way  inspector  travels 

^iv  b^f^rrL'^Sdn"^^^  n^'^^&  ^- 

manent-wav  i^tT  T^mSTw  W^  ^°'^'  the  empty  bag  back  to  the  per- 
man's  pay  i  so  Vo^rtiJ^  ff^lLr^i^^  ^  ^^'''Pif  ^"^  ^^^  ""^^  P^«**  Each 
can  satWv  himse?fTa^^rt  fLTt^  ^^  ?^'"^'  *-^^  the  permanent-^-ay  inspector 
the  coolie  stm  further ^^  if  ii^  *^^  ""f °  ^^^  '■'''«^'''^  ^  ^^"^^^  pay.     To  protect 

pug.  a  dXue  aU^rnc^is  d?duc?eT^mTh^  Y  '^  ^°^  *^  ^^  ^"^  ^^  '^^ 
for  this  piu-pose  '^riZ^r  rZ  1,^  ^f  """^^^  ^y  ^""^  ^^'®°  t<>  the  ^^^ 
This  is  cinsi&  to  L^rSpr  m.??^^f^'^^'*-^'  overcharge  them  for  their"  foSd. 
cif  the  gang's  money  toSesZ^^  of  handing  the  whole 

getting  hi  piov^ZTl^ZZ^^^  \'^'^^^^^^ 

punisHed  by  fina  ^^  «tlioufc  any  deductions  except  from  thoae  who  have  been 


72 


.lAILWAY  MATEKIALS,  EQUIPMENT,  AND  SUPPLIES. 


I 


The  railway  has  in  use  a  very  soccessful  and  interesting  system  of 
reports,  using  a  "picture"  language,  because  the  men  are  not  suffi- 
ciently educated  in  their  own  or  the  English  language  to  make  satis- 
factory reports  in  either.  This  system  requires  their  knowing  only 
the  Enslisn  numerals  1  to  0'. 

EOADWAY  AND  BRIDGE  MATEKIALS. 

In  general,  it  may  be  said  that  on  all  the  lines  built  with  foreign 
loans  the  practices  and  standards  of  the  country  furnishing  the  money 
were  very  largely  foHowed.  On  the  Imes  buift  by  Chinese  engineers 
with  Chinese  money  a  considerable  amount  of  American  roadway  and 
bridge  materials,  as  weM  as  American  rolling  stock,  was  always  used, 
the  most  noticeable  instance  being  the  Peking-Suiyuan  line,  built  in 
two  sections — the  first  125  miles  Known  as  the  Peking-Kalgan  and 
the  second  section  as  the  Kakan-Suiyuan,  the  last  110  miles  of  the 
latter  being  not  yet  completed. 

wmmGwa. 

One  seriou*  handicap  from  which  the  Chinese  railways  are  now 

ioffcring  and  which  it  will  be  very  expeuBive  to  remedy  is  the  fact 
that  all  the  bridges  that  have  been  built  carry  what  American  railway 
men  consider  virv  light  loads.  In  only  a>w  cases  does  the  loaS 
exceed  the  equivalent  of  Cooper  E-40,  and  in  a  number  of  instances 
it  is  as  low  as  Cooper  E-35.  A  good  example  is  the  Shantung  Rail- 
way^  where  the  Japanese  manaffement  is  desirous  of  using  heavier 
motive  power,  but  is  unable  to  do  so  because  the  bridges  only  carry 
a  load  Univalent  to  Cooper  E-35;  there  are  about  1,000  strictures 
iiivi)lved,>ut  most  of  them  are  short  smgle  spans.  Each  nation  hm 
followed  its  pecular  practice.  The  Germans,  French,  and  Belgians 
us©  a  style  of  floor  system  with  a  stringer  carrying  the  rail,  with  no 
bridge  ties  and  the  space  inside  and  outside  the  rails  filled  with  metal 
plates.  (See  fig.  12.)  This  makes  failure  of  the  structure  almost  cer- 
tain in  case  of  derailment.  This  type  of  construction  has  been  used 
on  the  Peking-Hankow,  Cheng-Tai,  Pienlo,  and  Shantung  lines  and 
the  German  section  of  the  Tientsin-Pukow.  The  British  have  fol- 
lowed their  standard  practice  (which  applies  also  to  all  materials 
fabricated  at  the  Shanbaikwan  bridge  works  of  the  Peking-Mukden 
Railway),  but  their  floor  system  is  very  similar  to  the  American  prac- 
tice  anaAoes  not  have  the  above  diJivantage  in  case  of  deraihSent. 
It  is  also  apparent  that  on  some  of  the  lines  sufficient! v  large  open- 
ings have  pot  been  provided.  This  has  been,  forcibly  dfemonstrated 
during  the  last  year,  particularly  on  the  Peking-Hankow  and  the 
German  section  of  the  Tientsin-Pukow.  On  the  first  line  the  bridge 
construction  has  been  much  criticized.  While  the  bridges  are  unques- 
tionably very  %ht,  it  is  doubtful  whether  any  set  of  engineers  would 
have  provided  sufficient  openings  to  take  care  of  the  excessive  floods 
of  the  past  year  in  this  part  of  China.  Figure  13  shows  one  of  these 
bridges  with  both  approaches  washed  away.  The  fact  is  that  some 
of  the  lines  will  be  compeled  to  do  considerable  reconstruction  of 


their  bridges  in  the  future. 


BUIUHMGS. 


Special  Agents  Series  No.  180. 


FIG.  12.— BRIDGE   ON   THE   FRENCH  YUNNAN   RAILWAY,  SHOWING   STRINGER 

TRACK  CONSTRUCTION. 


4 


On  account  of  the  great  scarcity  and  high  pricq^f  lumber,  there  is 
II  decided  tendency  to  construct  railway  buildings  of  all  classes  with 


FIG.  13.— BRIDGE  ON  THE  PEKING-HANKOW   RAILWAY  AFTER  1917  FLOODS. 


INTENTIONAL  SECOND  EXPOSURE 


Mm  /111 

72 


BAILWAY  MATEKIALS,  EQUIPMENT,  AND  SUPPLIES. 


^i 


F"^    I; 
L  .ji'lli.     I, 


The  railway  has  in  use  a  very  successful  and  interesting  system  of 
reports,  using  a  "picture"  language,  because  the  men  are  not  sufii- 
eiently  educated  m  their  own  or  the  Enghsh  language  to  make  satis- 
factory reports  in  either.     This  system  requires  their  knowmg  only 

the  English  numerals  1  to  0. 

ROADWAY  AND  BRIDGE  MATERIALS. 

In  general,  it  may  be  said  that  on  all  the  lines  built  with  foreign 
loans  the  practices  and  standards  of  the  country  furnishing  the  money 
were  very  largely  followed.  On  the  lines  built  by  Chinese  engineers 
with  Chinese  money  a  considerable  amount  of  American  roadway  and 
bridge  materials,  as  well  as  American  rolling  stock,  was  always  used, 
the  most  noticeable  instance  being  the  Pekm^-Suiyuan  line,  built  in 
two  sections — the  first  125  miles  known  as  the  Peking-Kalgan  and 
tlie  second  section  as  the  Kalgan-Suiyuan,  the  last  110  miles  of  the 
latter  being  not  yet  completed. 

One  serious-  handicap  from  which  the  Chinese  railways  are  now 
suffering  and  which  it  will  be  very  expensive  to  remedy  is  the  fact 
that  all  the  bridges  that  have  been 'built  carry  what  American  railway 
men  consider  very  light  loads.  In  only  a  few  cases  does  the  load 
exceed  the  equivalent  of  Cooper  E-40,  and  in  a  number  of  instances 
it  is  as  low  as  Cooper  E-35.  A  good  example  is  the  Shantung  Rail- 
way, where  the  Japanese  management  is  desirous  of  using  heavier 
motive  power,  but  is  unable  to  do  so  because  the  bridges  only  carry 
a  load  equivalent  to  €/Ooper  E-35;  there  are  about  1,000  structures 
involved,  but  most  of  them  are  short  single  spans.  Each  nation  has 
followed  its  peculiar  practice.  The  Germans,  French,  and  Belgians 
use  a  style  of  floor  system  with  a  stringer  carryuig  the  rail,  with  no 
bridge  ties  and  the  space  inside  and  outside  the  rails  filled  with  metal 
plates.  (See  fig.  12.)  This  makes  failure  of  the  structure  almost  cer- 
taui  in  ease  of  derailment.  This  type  of  construction  has  been  used 
on  the  Peking-Hankow,  Cheng-Tai,  Pienlo,  and  Shantung  lines  and 
the  German  section  of  the  Tientsin-Pukow.  The  British  have  fol- 
lowed their  standard  practice  (which  applies  also  to  all  materials 
fabricated  at  the  Shanhaikwan  bridge  works  of  the  Peking-Mukden 
Railway),  but  their  floor  system  is  very  similar  to  the  American  prac- 
tice and  does  not  have  the  above  disaclvantage  in  case  of  derailment. 

It  is  also  apparent  that  on  some  of  the  lines  sufficientlv  large  open- 
ings have  not  been  provided.  This  has  been,  forcibly  demonstrated 
during  the  last  year,  particularly  on  the  Peking-Hankow  and  the 
Geraian  section  of  the  Tientsin-Pukow.  On  the  first  line  the  bridge 
constraction  has  been  much  criticized.  While  the  bridges  are  unques- 
tionably very  light,  it  is  doubtful  whether  any  set  of  engineers  would 
have  provided  suflicient  openings  to  take  care  of  the  excessive  floods 
of  the  past  year  in  this  part  of  China.  J'igure  13  shows  one  of  these 
bridges  with  both  approaches  washed  away.  The  fact  is  that  some 
of  the  lines  will  be  compelled  to  do  considerable  reconstruction  of 
their  bridges  in  the  future. 

BUILDINGS. 

On  account  of  the  great  scarcity  and  high  pricq^of  lumber,  there  is 
ft  decided  tendency  to  construct  railway  buildings  of  all  classes  with 


Special  Agents  Series  No.  180. 


■•Ui;* 


PIG.  12.— BRIDGE   ON    THE    FRENCH  YUNNAN   RAILWAY.  SHOWING   STRINGER 

TRACK  CONSTRUCTION. 


FIG.  13.— BRIDGE  ON   THE  PEKING-HANKOW   RAILWAY  AFTER  1917  FLOODS. 


M     I. 


Special'  Agents  Series  No.  180. 


FIG.   14.— STEEL  TIES   (SLEEPERS)   OF    BELGIAN    MANUFACTURE    ON   THE 

CANTON-SAMSHUI    RAILWAY. 


CHINA. 


73 


FIG.  15.— STEEL  TIES  (SLEEPERS)  ON    THE   FRENCH   YUNNAN    RAILWAY, 

INDO-CHINA    LINES. 


brick,  stone,  or  concrete.  On  most  of  the  lines  very  substantial  build- 
ings of  all  classes  have  been  provided,  and,  as  akeady  mentioned,  m 
some  instances  these  are  elaborate  and  ornate.  In  many  cases  the 
buildings  are  erected  by  local  contractors. 


CROSSTIES. 


The  supply  of  crossties  (sleepers)  is  a  matter  of  the  greatest  impor- 
tance to  an  the  Chinese  railways.  No  part  of  China,  except  portions 
of  Manchuria,  has  any  timber  suitable  for  ties.  In  the  past  most  of 
the  ties  used  have  come  from  the  North  Island  of  Japan,  and  this  wiU 
probably  remain  the  main  source  of  supply  for  some  years  to  come. 
These  ties  are  termed  Japanese  oak,  but  about  70  per  cent  are  oak 
and  the  other  30  per  cent  a  mixture  of  Japanese  katsura  and  tanao. 
In  addition,  apitong,  Australian  jarrah,  mixed  hardwoods,  Haihn  pme 
or  Manchurian  red  pine,  and  Oregon  pine  have  been  used  in  vairmg 
quantities.  The  usual  dimensions  have  been  6  by  9  inches  by  8  feet, 
except  in  the  case  of  the  jarrah,  which  was  5i  by  9  inches  by  8  feet. 
The  apitong  and  jarrah,  both  being  very  dense,  have  to  have  holes 
bored  for  the  track  spikes.  , 

The  Tientsin-Pukow  Railway  advertisement  shown  on  page  68  is  a 
very  good  illustration  of  the  present  requirements  and  the  methods 

of  purchasing  crossties.  ,    ,     „.         ^  x>  -i  v 

Mr.  G.  A.  Kyle,  chief  engineer  of  the  Siems-Carey  Railways,  has 
made  a  careful  analysis  of  the  available  data  and  the  following  table 
shows  his  conclusions;  this  is  based  on  the  use  of  untreated  timber 
and  ordinary  track  spikes,  without  tie-plates : 


Items. 

Japanese 
oaVs. 

Apitong. 

Jarrah. 

Hard- 
woods. 

Hailin 
pine. 

Oregon 
pine. 

ESTIMATED  LIFK. 
Tn  Nnrth  China   ..  . ••- 

Years. 
9 
8 
7 

Years. 

10 

9 

7 

Years. 
18 
16 
14 

Years. 
7 
6 
5 

Years. 
5 
4 
3 

Years, 
7 

Tti  Con  tral  China 

a 

In  South  China 

5 

AirArof7A  ff\T  ftll  r^Viimi. .... ..... 

8 

9 

16 

6 

4 

6 

COST. 

A  mmt-m^A  Itnof  Af  f  t«»  t^fAlVPTPA  ............. 

Mexican 
dollars. 
2.25 

Mexican 

dollars. 

2.75 

.04 

.13 

.80 

Mexican 

dollars. 

6. 00 

.04 

.13 

.30 

Mexican 
dollars. 
2.20 

Mexican 
dollars. 
1.59 

Mezictn 
dollars. 
2.60 

Cost  01  Doriiig  lour  noies  lor  spih.es 

Orto*-  r\t  fntlT  ♦rttf»lr  QTiilrPQ     ................. 

.13 
.30 

.13 
.30 

.13 

.30 

.13 

Cost  of  putting  in  track  and  spiking 

.30 

T/\+nl  /»/\cf  f\f  f\0  in  trftfilc  .....•.«..-• 

2.fi8 
.16 

3.22 
.19 

6.47 
.39 

2.63 
.16 

1.93 
.llh 

3.03 

interest  at  6  per  cent  per  annum 

.IS 

Total  cost  for  life  of  tie 

2.84 

3.41 

6.86 

2.79 

2.04^ 

3.21 

Cost  per  year 

.36i 

.38 

.43 

.46i 

.51 

.53i 

Equivalent    initial    cost    compared    to 

2.51 

4.95 

1.68 

1.02 

i.7:| 

1 

■\ 

This  shows  that  the  present  practice  of  using  the  Japanese  ties  is 
the  most  economical.  One  reason  for  the  short  life  in  South  China  is 
found  in  the  ravages  of  white  ants.  The  item  of  interest  is  figured 
on  the  assumption  that  the  tie  is  paid  for  one  year  before  being  placed 

in  the  track.  ,    •    •      v 

The  Germans  used  a  very  substantial  pressed-steel  tie  m  the  con- 
struction of  the  Shantung  Railway;  it  has  given  satisfactory  results, 


INTENTIONAL  SECOND  EXPOSURE 


Special  Agents  Series  No.  180. 


lip 


FIG.   U.— STEEL  TIES    (SLEEPERS)    OF    BELGIAN    MANUFACTURE    ON   THE 

CANTON-SAMSHUI     RAILWAY. 


t 


.4 

.4 


FIG.   15.— STEEL  TIES   (SLEEPERS)   ON    THE    FRENCH    YUNNAN    RAILWAY, 

INDO-CHINA    LINES. 


CHINA. 


73 


brick,  stone,  or  concrete.  On  most  of  the  lines  very  substantial  build- 
ings of  all  classes  have  been  provided,  and,  as  already  mentioned,  in 
some  instances  these  are  elaborate  and  ornate.  In  many  cases  the 
buildings  are  erected  by  local  contractors. 


CROSSTIES. 


The  supply  of  crossties  (sleepers)  is  a  matter  of  the  greatest  impor- 
tance to  all  the  Chinese  railways.  No  part  of  China,  except  portions 
of  Manchuria,  has  any  timber  suitable  for  ties.  In  the  past  most  of 
the  ties  used  have  come  from  the  North  Island  of  Japan,  and  this  will 
probably  remain  the  main  source  of  supply  for  some  years  to  come. 
These  ties  are  termed  Japanese  oak,  but  about  70  per  cent  are  oak 
and  the  other  30  per  cent  a  mixture  of  Japanese  katsura  and  tamo. 
In  addition,  apitong,  Austrahan  jarrah,  mixed  hardwoods,  Haihn  pme 
or  Manchurian  red  pine,  and  Oregon  pine  have  been  used  in  varymg 
quantities.  The  usual  dimensions  have  been  6  by  9  inches  by  8  feet, 
except  in  the  case  of  the  jarrah,  which  was  5i  by  9  inches  by  8  feet. 
The  apitong  and  jarrah,  both  being  very  dense,  have  to  have  holes 
bored  for  the  track  spikes. 

The  Tientsin-Pukow  Kailway  advertisement  shown  on  page  68  is  a 
very  good  illustration  of  the  present  requirements  and  the  methods 
of  purchasing  crossties. 

Mr.  G.  A.  Kyle,  chief  engineer  of  the  Siems-Carey  Railways,  has 
made  a  careful  analysis  of  the  available  data  and  the  following  table 
show^s  his  conclusions;  this  is  based  on  the  use  of  untreated  timber 
and  ordinary  track  spikes,  without  tie-plates: 


Items. 

Japanese 
oa'  s. 

Apitong. 

Jarrah. 

Hard- 
woods. 

Hailin 
pine. 

Oregon 
pine. 

ESTIMATED  LIFE, 

In  North  China 

Years. 
9 
8 
7 

Years. 

10 

9 

7 

Years. 
18 
16 
14 

Years. 
7 
6 
5 

Years. 
5 
4 
3 

Years, 
7 

In  Pontral  China 

6 

In  South  China 

5 

Averas:e  for  all  China 

8 

9 

16 

6 

4 

6 

COST. 

Assumed  cost  of  tie  delivered  - 

Mexican 
dollars. 
2.25 

Mexican 

dollars. 

2.75 

.04 

.13 

.30 

Mexican 

dollars. 

6.00 

.04 

.13 

.30 

Mexican 
dollars. 
2.20 

Mexican 
dollars. 
1.50 

meiicin 
doUnrs. 
2.60 

Cn*<f  nf  fnnr  track  SDlkes 

.13 

.30 

.13 

.30 

.13 

.30 

.13 

Cost  of  putting  in  track  and  spiking 

.30 

Total  pr»<?t  nf  tie  in  track 

2.fi8 
.16 

3. 22 
.19 

6.47 
.39 

2.63 
.16 

1.93 

•  Hi 

3.03 

Tnf  f^rptt  at  fi  Dpr  cent  Dcr  annum 

.18 

Tntftl  enst  for  life  of  tie 

2.84 

3.41 

6.86 

2.79 

2.04J 

3.21 

Ocfit  nor  voar ............................. 

.35i 

.38 

.43 

.46^ 

.51 

•53'i 

Equivalent    initial    cost    compared    to 

2.51 

4.95 

1.68 

1.02 

I  7:  J 

This  shows  that  the  present  practice  of  using  the  Japanese  ties  is 
the  most  economical.  One  reason  for  the  short  life  in  South  China  is 
found  in  the  ravages  of  white  ants.  The  item  of  interest  is  figured 
on  the  assumption  that  the  tie  is  paid  for  one  year  before  being  placed 
in  the  track. 

The  Germans  used  a  very  substantial  pressed-steel  tie  in  the  con- 
struction of  the  Shantung  Railway;  it  has  given  satisfactory  results, 


^ 


r1 


74 


RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


^{!L^  !i  T.  ^"^  VP  ^"^^  ^5?*  <'**^*'  '^«»gli  »t  ^^  impossible  to 
obtain  any  data  on  that  point.    On  account  of  the  entire  lack  of  any 

S'Ji„  *,  ^  r"^^  ?."PP^^  ?^  crossties.  and  in  view  of  the  large  supply 
nroW^rfn'i'^K'"*'' »»  yT^V^d  «eem  that  the  final  solution  of  the  croytie 
problem  in  China  is  hkely  to  be  the  use  of  a  steel  tie.    One  of  the 

ZS'onX  ifiWH^.n^'" -^  ''^  ^""^^  !^  ^'  possibility  of  laying 

mem  on  mm  snbgmm  and  usuie  theEi,  at  least  temDoranlv  wifh^nf 

baUast.     Figures  14  and.  15  shfw  ste.^1  ties  meniaTafe'r"  c^n 
nectWQ  with  the  Samshui  and  the  French  Yunnan  lines. 

The  Han-Yeh-Ping  steel  works  at  Hankow  are  supposed  to  furnish 
all  the  raJ  and  joint  matenal  required  for  the  construction  and 
renewals  of  the  Chmese  Government  Railways,  but  because  of  the 

SSi^/dl^aniftr.^r^'"!  ^T""  ''''^f  rU-y,.r),  the  ranidl? 
growmg  demand  for  aU  kmds  of  iron  and  steel  products  has  been 

^?  ^»l  ^T"'^  ^^^  "^Pr  ^y  ?^  *^'?.  P^''"'  '^^^  ^  considerable  Tm^Tt 
of  rail  has  been  imported,  and  until  there  is  an  increased  production 
this  wJl  probably  continue  to  be  the  caso  in  the  future.     6™e  75 
IS  shown  the  detailed  section  of  an  8o-pound  rail,  which  c^  bo 
a)n8idered  the  Chinese  standard  section  and  has  been  used  on  the 
Pekmg-Smyuan,    the   British  section   of   the   Tieatsin-P^ikow    th« 
^^^  «*=*«»»  «|.  the  Canton-Hankow,  the  Shangbai-Hangchow! 
Wmgpo,  and  the  Pienlo.    As  illustrating  the  restrictions  rSultine 
from  some  of  the  loan  agreements  it  may  be  mentioned  that,  although 
the  rail  for  the  German  section  of  the  Tientsin-Pukow  line  was  fifr 
mshed  from  the  Han-Yeh-Ping  works,  it  was  i.isisted  that  thb  be  a 
German  section  wei^g  B7.3  pounds  per  yard.     The  Belgians  use.1  a 
76-pound  Belgian  secUon  on  the  Peking-Hankow  Raulav    and  in 
several  other  mstances  special  sections  were  required,  with  the  well- 

^^di^^^Mr*^'  ^^P^""  '"^  '"^  ''^'  ^^-P->-  --l-d  in 

KAIL  rASTENlNGa. 

The  details  of  angle  bars,  joint  bolts,  and  track  spikes  in  General 
use  are  shown  on  page  75  llus  applies  particularly  to  the  iDies  on 
which  the  Chmeae  standard  section  of  85-pound  rail  is  used      It  w^M 

^,»n™v^*  ^*  ^^^A  '^  ^  typical  dog-eared  British  track  spike 
usually  spoben  of  as  a  dog  spike."  Except  for  the  jarrah  and  apiW 
ties,  It  IS  not  the  rule  to  bore  the  spike  holes  or  seat  the  rail  Screl 
^ikes  have  been  used  on  a  very  considerable  portion  of  the  pS^h-^ 
Hankow  bne  Figures  20  and  21,  facing  page  77,  show  these  scrnw 
spikes,  and  the  appUcation  b  very  simiTai!  tS  the  general  American 
practice  where  tie  pktes  are  used.    On  the  GemStn  section  of  the 

tW^"^""^\^f™""li.^'^  P*»**1  *°*!,  ^"^^  «P*««  1»»^«  been  used 
that  are  different  from  those  employed  on  any  other  line  in  China 

and,  agam,  on  the  pressed  steel  ties  on  the  Shantung  RaUwav  a 
different  fastemng  of  German  design  was  used  «auway  a 

ROG8  AND  SWnCHBg. 

In  the  Chinese  Government  RaUways  system  of  uniform  accounts 

^^  J!fj'T''^.  i'"^  *"'*  s'-itches),  signals  and  interlocking 
gear,  and  electnc  staff  apparatus  all  come  under  one  construct  on 
account,  which  is  divideS'^into  three  subaccounto.    TlL^^S^  o^f 


CHINA. 


75 


: 


SCALE    l:a 
Chinese  Standard  Sectio^i 

FIG.  16. 


76 


|iM 


•  t 


1  ,i 


RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


switch  Stand  shown  m  figure  20  is  in  very  general  use  on  all  the  lines, 
although  in  some  instances  the  lever  throws  parallel  to  the  track 
instead  of  across  as  on  this  line,  the  Peking-Hankow.  All  the  other 
materials  coming  under  this  account  conform,  in  general  to  the 
IfThlTjI  ^^^.^^^^7  furnishing  the  loan  funds  for  t?ie  cons'truction 
11  Iif    ?f  •     ^  ^^J?  ?^  ^^^^^  ^  typical  construction  of  switch  used  on 

!  l!«L  TTi  ^^^^'^^  t""^  ^r°^^  ^V"^-  These  are  made  from 
a  heavy  rolled  form,  which  is  planed  down,  making  a  very  robust 
switch  pomt ;  and  it  wiU  be  noticed  that  the  installation  is  substantial 
with  a  heavy  iron  plate  extending  the  entire  length  of  the  point.  The 
frogs  used  are  of  the  same  general  design.  The  British  design  of 
points  and  crossings  is  very  similar  to  the  American  switch-and-frot' 
practice.  There  is  a  growmg  tendency  for  all  the  lines  to  manufac- 
ture their  own  switches,  frogs,  and  switch  stands  in  their  own  work- 
shops and,  in  doing  so,  to  follow  the  general  lines  of  the  British 
practice,     figure  21  shows  one  of  the  various  types  of  derailers- 

S/L^IWa?^  '^^^^'^  "^^  f^^^  ^^*  ^°  ^^^^^3^  all  instances  they 
might  be  called  "home-made  '  devices. 

RAIL  ANCHORS. 

'^T.t^Z^^  ^®^  anticreepers  or  rail  anchors  have  been  used  on 
liny  of  the  Chinese  Government  Railways,  but  it  is  apparent  at  manv 
places  that  their  use  would  be  very  beneficial,  although  rock  ballast 
SI  /  •  xT*^^  I  .q"»S^i!;^es  has  been  used  on  many  of  the  lines.  The 
51ianghai-]Manking  Railway  has  used  some  rail  anchors  with  satisfac- 
tory results. 

AMOUNT  OP  ROLLING  STOCE, 

One  of  the  great  needs  of  the  Chinese  Government  Railwavs  at 
preseiit  13  a  very  considerab^^^^  increase  in  freight  cars  and  locomotives. 
On  the  Peking-Mukden  Railway  there  has  been  an  increase  of  50  per 
cent  in  freight  traffic  in  the  last  five  years,  with  only  a  22  per  cent 
increase  in  Ireight  cars  and  a  21  per  cent  increase  in  locomotives  to 
handle  this  gi-owing  business.  The  following  table  shows  a  compari- 
son of  rolling  stock:  ^ 


NameofrailTmy. 

Miles 

of 
line. 

Locomotives. 

Passenger  cars. 

Freight  cars.    ' 

Num- 
ber 

Num- 
tier. 

Per 

mile. 

Num- 
ber. 

Per 
mile. 

Number 

Per 
mile. 

of 

service 

cars. 

PeMnR-Miikden 

Pekini-Siiyuan, 

Tientsin-Pulcow.. ** 

600 
291 
688 
814 

381 

142 

m 

M 
129 

73 

332 

93 

223 

187 

218 

3,203 

S53 

1,266 

2,675 

954 

38 

8 

Pekine-Biinkoir , 

61iftiig&al-Niia:kiiif  and  Slungliai- 

Hangchflfir-Ningpo 

123 
41 

18 

Total , , 

2,774 

504 

0.18 

1,053 

0.38 

8,951 

3.23 

228 

Im'periiil  Govemment  RaOways 
of  Japan  (1916). ,. 

5,757 

2,680 

.47 

6,838 

1.19 

42,700 

7.42 

942 

€€nnanj  (1013) , 

38,154 

29,520 

.77 

86,568 

2.29 

671,096 

17.60 

United,  States  (1916) 

231,179 

61,267 

.26 

104,290 

.45 

2,277,970 

9.85 

97, 112 

III 


Special  Agents  Series  No.  180. 


FIGS.  17  AND  18.— TYPICAL  EXAMPLES  OF  SIGNALING  ON  THE  CHINESE 

GOVERNMENT   RAILWAYS. 


FIG.  ""^.-DEVICE    USED    ON    THE    PEKING-HANKOW    RAILWAY    IN 
ATTEMPT  TO   PREVENT  CROSSTIES  FROM   CHECKING. 


AN 


INTENTIONAL  SECOND  EXPOSURE 


76 


lAILWAY  MATEKIALS,  EQUIPAIEXT,  AND  SUPPLIES. 


switch  Stand  shown  in  figure  20  is  in  very  general  use  on  all  the  lines, 
although  in  some  instances  the  lever  throws  parallel  to  the  track 
mstea;!  of  across  as  on  this  line,  the  Peking-Hankow.    All  the  other 
materials  coming  under  this  account  conform,  in  general,   to  the 
pi-actice  of  the  country  furnishing  the  loan  funds  for  the  construction 
01  the  lioi?.     1^  igure  20  shows  a  typical  construction  of  switch  used  on 
ail  the  Germa^i    Belgian,  and  French  lines.     These  are  made  from 
a  heavy  rolled  form,  which  is  planed  down,  making  a  very  robust 
switch  point;  and  it  will  be  noticed  that  the  installation  is  substantial 
with  a  heavy  iron  plate  extending  the  entire  length  of  the  point.     The 
irogs  usee    are  of  the  same  general  design.     The  British  design  of 
points  and  crossings  is  very  similar  to  the  American  switch-antl-froc^ 
practice.     Ihere  is  a  growing  tendency  for  all  the  lines  to  manufac^ 
tiire  their  own  s-witehes,  frogs,  and  switch  stands  in  their  own  work- 
shops and,  in  doing  so,  to  follow  the  general  lines  of  the  British 
practice.     I^igure  21  shows  one  of  the  various  types  of  derailers- 
there  IS  a  very  great  variety  of  these,  but  in  nearly  all  instances  they 
might  be  called  "home-made '^  devices.  ^ 

RAIL  ANCHORS. 

Thus  far  very  few  anticreepers  or  rail  anchors  have  been  used  on 
any  of  the  Chinese  Government  Railways,  but  it  is  apparent  at  many 
places  that  their  use  would  be  very  beneficial,  although  rock  balla^'t 
ci  *^^^l^  '^^^^l  .quantities  has  been  used  on  many  of  the  lines.  The 
Shanghai-Banking  Railway  has  used  some  rail  anchors  with  satisfac- 
tory results. 

AMOUNT  OF  ROLLING  STOCK. 

One  of  the  great  needs  of  the  Chinese  Government  Railways  at 
present  is  a  very  considerable  increa^  in  freight  cars  and  locomotives. 
IM  the  reking-Mukden  Railway  there  has  been  an  increase  of  50  per 
cent  m  freight  traffic  in  the  last  five  years,  with  only  a  22  per  cent 
increase  in  freight  cars  and  a  21  per  cent  increase  in  locomotives  to 
handle  this  growing  business.  The  following  table  shows  a  comnari- 
son  of  rolling  stock:  ^ 


Name  of  railway. 

Miles 
of 

line. 

Locomotives. 

Passenger  cars. 

Freight  cars. 

Num- 
ber 

Num- 
ber. 

Per 
mile. 

Num- 
ber, 

Per 
mile. 

Number 

1 
Per 
mile. 

of 

service 
cars. 

Peki  ng-  Mukden 

rekiiig-Suiyuan 

Tien  t  sin-I*{ikow 

I^ekiiig-Harikow, " 

Shai  luhai-Naii  k  in  «  a  nd  Shangliai- 
Hangchow-Niiigpo 

600 
291 

688 

814 

381 

142 
66 
94 

129 

73 

*  *  * 

332 
93 

223 
187 

218 

3,203 

8.53 
1,266 
2,675 

954 

38 

8 

123 
41 

18 

Total , 

2,774 

504 

0.18 

1,053 

0.38 

8,951 

3.23 

228 

Imperial  Government  Railways 

of  Japan  (1916) '. . . 

5,757 

2,680 

.47 

6,836 

1.19 

42,700 

7.42 

M2 

Germany  { 1913) 

38, 154 

29,520 

.77 

86,568 

2.29 

671,096 

17. 60 

United  States  (1916) 

231,179     61,267 

.26 

104,290 

.45 

2,277,970 

9.85 

97, 112 

Special  Agents  Series  No.  180. 


^i 


FIGS.  17  AND  18.— TYPICAL  EXAIVIPLES  OF  SIGNALING  ON  THE  CHINESE 

GOVERNMENT   RAILWAYS. 


FIG.  19.— DEVICE    USED    ON    THE    PEKING-HANKOV\^    RAILWAY    IN    AN 
ATTEMPT  TO   PREVENT  CROSSTIES   FROM   CHECKING. 


CHINA. 


77 


Special  Agents  Series  No.  180. 


FIG.  20.— TYPICAL   SWITCH,   SWITCH    STAND,   AND    RAIL   FASTENINGS   ON   THE 

PEKING-HANKOW   RAILWAY. 


If 


FIG.  21.— DERAIL  AND    RAIL   FASTENINGS  ON  THE   PEKING-HANKOW   RAILWAY. 


From  the  above  figures  it  will  be  noticed  that  these  six  lines, 
including  the  most  important  of  the  Chinese  Government  Railways, 
are  provided  with  much  less  equipment  per  mile  than  the  railways 
of  Japan,  Germany,  or  the  United  States,  and  the  disparity  becomes 
even  more  striking  when  the  earnings  are  compared.  This  group  of 
Chinese  railways  earned  in  1916  $19,700  (Mexican)  per  mile  of  line, 
against  $10,150  (gold)  for  the  Japanese  railways  and  $15,600  for  the 
railways  of  the  United  States.  The  earnings  ot  the  German  railways 
for  1913  (the  last  year  available)  were  $22,300  (United  States  currencv) 
per  mile.  With  the  prevailing  price  of  silver,  the  earnings  of  the 
Chinese  railways  were  actually  higher  than  those  of  the  Japanese 
railways  and  were  practically  equal  to  those  of  the  railways  of  the 
United  States. 

Further  attention  will  be  called  to  this  situation  in  the  suggestions 
made  later  concerning  the  possibility  of  American  interests  furnishing 
rolling  stock  to  these  Chinese  Go\rernment  Railways,  to  be  handled 
through  an  equipment- trust  scheme  similar  to  the  arrangements  by 
which  many  American  railways  have  bought  rolling  stock  in  the  past. 

GENERAL  CHARACTERISTICS  OF  ROLLING  STOCK. 

• 

The  initial  equipment  on  all  the  lines  (particularly  those  first  con- 
structed) is  more  representative  of  the  practices  of  the  nations  fur- 
nishing the  loan  funds  than  is  the  case  with  the  subjects  already 
mentioned.  As  a  result,  the  Chinese  railways  to-day  have,  as  a 
whole,  a  more  miscellaneous  assortment  of  equipment  than  any  other 
equal  mileage  of  railways  in  the  world.  A  considerable  part  of  the 
rolling  stock  (particularly  the  locomotives  and  goods  wagons  first 
acquired)  is  light  and  of  small  carrying  capacity.  This  was  very 
unfortunate,  for  the  reason  that  the  railway  Dusiness  of  China  is  not 
natually  a  classified-goods  business  but  rather  the  transportation  of 
commodities,  a^d  thl  tendency,  as  the  raUways  are  extended  and 
the  traffic  grows,  will  probably  become  more  pronounced.  Therefore, 
the  advantage  of  freight  cars  of  large  capacity  and  heavy  motive 
power,  along  the  lines  of  American  practice,  is  readily  apparent.  The 
character  of  the  early  roUine  stock  forms  the  explanation  for  the 
light  design  of  the  bridges,  miich  will  have  to  be  corrected  at  much 
expense  before  the  type  of  equipment  demanded  by  this  class  of 
traffic  can  be  used.  The  average  tractive  effort  of  aU  locomotives  on 
the  Chinese  Government  Raih^^ays  is  now  approximately  21,000 
pounds,  the  average  carrying  capacity  of  all  passenger  cars  is  67.5 
persons  per  car,  and  the  average  carrying  capacity  of  all  freight  cars 
IS  50,350  pounds.  In  connection  with  me  locomotives,  however,  it 
should  be  mentioned  that  on  the  Peking-Suiyuan  line,  which  is 
equipped  with  60  American  locomotives  out  of  a  total  of  66,  the 
average  tractive  effort  of  all  locomotives  is  about  30,000  pounds, 
which  has  the  effect  of  reducing  the  average  of  all  locomotives  on  the 
other  lines  to  about  18,700  pounds. 

It  is  also  surprising  to  find  the  small  amount  of  freight  equipment 
that  is  equipped  with  air  brakes.  In  one  instance  this  lack  of  power 
brakes  is  limiting  the  coal  traffic  that  one  of  the  roads  can  handlp) 
during  the  winter  when  it  should  be  handling  the  maximum  tonnage, 
l^e  Peking-Suiyuan  |ine,  on  account  of  tne  heavy  grades  over  tne 
West  Hills,  is  well  equipped  with  air  brakes  on  all  its  equipment,  and 


INTENTIONAL  SECOND  EXPOSURE 


Special  Agents  Series  No.  180. 


CHINA. 


77 


FIG.  20.— TYPICAL   SWITCH,   SWITCH    STAND,    AND    RAIL    FASTENINGS   ON    THE 

PEKING-HANKOW    RAILWAY. 


Jir  1 


« 


FIG.  21.— DERAIL  AND    RAIL   FASTENINGS   ON    THE   PEKING-HANKOW    RAILWAY. 


From  the  above  figures  it  will  be  noticed  that  these  six  lines, 
including  the  most  important  of  the  Chinese  Government  Railways, 
are  provided  with  much  less  equipment  per  mile  than  the  railways 
of  Japan,  Germany,  or  the  United  States,  and  the  disparity  becomes 
even  more  striking  when  the  earnings  are  compared.  This  group  of 
Chinese  railways  earned  in  1916  $19,700  (Mexican)  per  mile  of  line, 
against  $10,150  (gold)  for  the  Japanese  railways  and  $15,600  for  the 
railways  of  the  United  States.  The  earnings  oJf  the  German  railways 
for  1913  (the  last  year  available)  were  $22,300  (United  States  currency) 
per  mile.  With  the  prevailing  price  of  silver,  the  earnings  of  the 
Chinese  railways  were  actually  higher  than  those  of  the  Japanese 
railways  and  were  practically  equal  to  those  of  the  railways  of  the 
United  States. 

Further  attention  will  be  called  to  this  situation  in  the  suggestions 
made  later  concerning  the  possibility  of  American  interests  furnishing 
rolling  stock  to  these  Chinese  Government  Railways,  to  be  handled 
through  an  equipment- trust  scheme  similar  to  the  arrangements  by 
which  many  American  railways  have  bought  rolling  stock  in  the  past. 

GENERAL  CHARACTERISTICS  OF  ROLLING  STOCK. 

The  initial  equipment  on  all  the  lines  (particularly  those  first  con- 
structed) is  more  representative  of  the  practices  of  the  nations  fur- 
nishing the  loan  funds  than  is  the  case  with  the  subjects  already 
mentioned.  As  a  result,  the  Chinese  railways  to-day  have,  as  a 
whole,  a  more  miscellaneous  assortment  of  equipment  than  any  other 
equal  mileage  of  railways  in  the  world.  A  considerable  part  of  the 
reviling  stock  (particularly  the  locomotives  and  goods  wagons  first 
acquired)  is  light  and  of  small  carrying  capacity.  This  was  very 
unfortunate,  for  the  reason  that  the  railway  Dusiness  of  China  is  not 
natually  a  classified-goods  business  but  rather  the  transportation  of 
commodities,  and  this  tendency,  as  the  railways  are  extended  and 
the  traffic  grows,  will  probably  become  more  pronounced.  Therefore, 
the  advantage  of  freight  cars  of  large  capacity  and  heavy  motive 
power,  along  the  lines  of  American  practice,  is  readily  apparent.  The 
character  of  the  early  rolling  stock  forms  the  explanation  for  the 
light  design  of  the  bridges,  wliich  will  have  to  be  corrected  at  much 
expense  before  the  type  of  equipment  demanded  by  this  class  of 
traffic  can  be  used.  The  average  tractive  effort  of  all  locomotives  on 
the  Chinese  Government  Railways  is  now  approximately  21,000 
pounds,  the  average  carrying  capacity  of  all  passenger  cars  is  67.5 
pei-sons  per  car,  and  the  average  carrying  capacity  of  all  freight  cars 
IS  50,350  pounds.  In  connection  with  the  locomotives,  however,  it 
should  be  mentioned  that  on  the  Peking-Suiyuan  line,  which  is 
equipped  with  60  American  locomotives  out  of  a  total  of  66,  the 
average  tractive  effort  of  all  locomotives  is  about  30,000  pounds, 
which  has  the  efiect  of  reducing  the  average  of  all  locomotives  on  the 
other  lines  to  about  18,700  pounds. 

It  is  also  surprising  to  fuid  the  small  amount  of  freight  equipment 
that  is  equipped  with  air  brakes.  In  one  instance  this  lack  of  power 
brakes  is  limiting  the  coal  traffic  that  one  of  the  roads  can  hamHe; 
during  the  winter  when  it  should  be  handling  the  maximum  tonnage. 
The  Peking-Suiyuan  line,  on  account  of  tne  heavy  grades  over  the 
West  Hills,  is  well  equipped  with  air  brakes  on  all  its  equipment,  and 


I 


78 


BAILWAT  MATEEIAI^,  EQUIPMENT,  AND  SUPPLIES, 


Jh!  i^  •  ♦  "i^"^  °"  ^^^  ""^""r  ^^  »«  »n  additional  restriction  on 
the  free  interchange  of  traffic  between  this  line  and  throther  Lm 
not  so  Mmpped  Tie  Janney-Penn  couple  is  usetl  very  eenerallv  on 
all  the  lines  and  nrnhshlir  ita  »<,«  ;=  ^  ^_  i         •     "  geueiauy  on 

of  anv  othn;  nn„ -?i^:„t  ^  li  ^'^  ™*'/?  °®"^y  univereal  than  that 
oi  any  other  one  device  on  the  Chinese  Government  Railways, 

LOCOMOnVIS. 

f«-T^'",^™?**T  ®''**'^,'  probably  to  a  greater  extent  than  any  other 
feature   the  tendency  of  each  nation  to  foUow  its  home  DraoL^o^fn 
fanushmg  equipment  for  the  Chinese  railways      ATrefu It  k^h^ 
ttiere  are  four  distinct  types  of  locomotive  conHtmn.;!f^  1      I- 
British.  Franco-Belgian,  ^nnan,'Zr]^:ricriThtTast^\ted' 
being  present  tea  greater  or  less  cktent  on  aU  the  lines  and  nrS 
natmg  on  U,o  Chinese-built  lines,  such  as  the  PekLg^^i^an^IndX 
fw^"^'"S^«*'r-Ni^P°-     f"««^  22,  facing  pje  %    Zws  a 
S^t^^S'T  locomotivl  on  th^  PekinV^Lkow  m7  U 
«UK^*     ^  .  type  of  frame  and  truck  construction,  and  also  the 
elaborate  pilot  construction  as  contrasted  with  the  tv\)ical  buH  nn«! 
puot  of  Bnt^h  practice.    All  locomotives  except  the  ISerican  S^ 
the  plate  or  fabricated  frame  constniction.    tLb  vnite^^s  cSiSSr 
however,  favored  the  American  bar-framo  constnicHm.  fir^f  K^       ' 
this  type  of  construction  seem,  sSued  rt^e  d^  J  trS  ^on^fr^lf 

?X^' r^„*^°z^  '^'';^  pr«a  i»1-eTon'S^it"a'ii^ 

It^Z^^'^f^^'-  '^•"^  °'  ^*'*'  advantage  in  shipping  space,  it  being 
stated  that  there  is  a  savmg  of  more  than  one-thii5^in  this  connection^ 
wl^i-^l?"*'*^*^"  manuTacturere  are  provided  with  adequa"rpla"t 
facilities  the  Amencan  typ  gives  the  lowest  firet  cost  iSut  not  f«« 
clanned  by  compet  tors)  tL  Fowcst  quality.    T^e  A^^erican  enjn^ 

ditTori^?;.T'f  i^.S'r.*''^  T'f '"«  requirements  and  repairing  fon! 
ditions  m  Chma,  and  the  wnt«r  feeis,  therefore,  that  Amencan  man, 

{he  deranls^'o^frf.:,**"'  ^""^  ''l'^^  t^^'^'^'^  and  not  accede  ^ 
t.tlt^cSri4raa"''^ire^^^^^  of  their  own  par- 

&"  '''^£'  .^-S^  com'Jh^-rinThXttL'?,^^^^^^^^ 
STen^or  tl^ ^'rL^^'i^^JP'^?^'  «-•    The 


Ttnfiali  an^n»„~.    r-— --  ".»~  ujjoiuvc  »(>eciai  mention.     The 

British  engmcers,  as  a  rule   favor  the  Belpaiii  type  of  locomotive 
xes,  clauning  tfuit  with  Chinese  shop  labor  they  can  b^ 

'  inspected  and  filwanli/  fvnimf«;««.i .  L^a  *i.^__#  •!       \ 


%*!l«^^J?r^i.i  ^-^^^  --"^''^"is  Mwi,  wiLo  i^mnese  snop  labor  ihev  can  \m 
E^^'^  '^'P-'**^  «.«d  cheaply  maintained;  and  VheS!whe^ 
^  S^ulcture,^%'CM'^'  ^^A^  ""?  »PP''^"t  "'"^O"  ^hy  Ameri" 
ifinas  uoiier  lUDes,  the  writer  feels  that  when  these  are  sneciiied  mm 
D^e'^«?r^«^  made  accordindy,  as  tWs  is  largelyTmaTtenf 
Qy^lor  ^T  dZoZT^'^^  nec^saiy  an  alternate  price  can 
KXllo^  ^h.«  *  account  of  the  distance  from  source  of  supplies 
ine  smaller  value  of  scrnn   «th4  tfco  fo»*  tk^*  ii.-  m.- "kk">^i 


the  smaUer  value  rf-screp-"ai.d  the  rcrtrarre  ChTr  'Ty^ 
Zir^:^LTt\u^i}^J'Z^b'^J '^  point  is  one  S 


6  rass  Wu<.*„^„  ^^^  *»wit;A  puor  irooworKers,  tins  point  m  Ana  rif 

SBiXfrt'"  ^''^  ^^"^  *^^^^  connection     Ctherp^^^^^^^ 
Sm  Imhlul  ^Z:^  ^T^^  "'^  IMS  qtiestion  is  the  long  life^Z 

will  probabiv  prevail  for  all  classes  of  romng  stock  in  niini.    r.n 
aceottnt  of  fel^  percentage  of  the  fiiBt  cost^haTis  chameaWe  to 

of  what  might  otherwise  he  considered  obsolete  equipment     It  k 


CHINA. 


79 


not  believed  that  the  type  of  franie  construction  affects  this  last 
consideration,  but  it  is  possible  that,  particularly  in  C^ina,  the  copppr 
and  brass  plates  and  tubes  may  have  a  bearing  in  this  connection. 


TRAIN  BRAKES. 


When  used,  air  brakes  are  usually  of  the  Westinghouse  design  of 
the  nation  furnishing  the  equipment.  It  is  not  usual  for  other  nations 
to  put  as  much  braking  on  the  locomotive  and  tenders  as  is  the 
American  practice.  The  passenger  equipment,  as  a  rule,  is  well 
equipped  with  air  brakes,  but  no  air  train  signals  are  in  use  on  any 
of  the  lines.  As  already  stated,  the  freight  equipment  is  only  partly 
equipped  with  air  brakes.  Most  of  the  fines  depend  on  hand'  brakes. 
As  a  rule,  every  fifth  or  sixth  car  is  equipped  with  a  small  shelter; 
the  train  is  arranged  for  two  of  these  to  come  together,  and  the 
braking  is  done  by  hand, 

PASSENGER  EQUIPMENT. 

Sleepers  and  first-class  passenger  cars  are  usually  of  the  compart- 
ment-corridor type.  The  Peking-Mukden,  Tientsin-Pukow,  Peking- 
Hankow,  and  Shanghai-Nanking  own  and  operate  their  own  sleeping 
cars,  and  on  all  these  lines  the  same  equipment  performs  the  service 
of  first-class  passenger  car  and  sleeping  car.  These  are  the  only  lines 
running  sleeping  cars.  These  four  lines  and  the  Peking-Suiyuan  own 
and  operate  their  own  dining  cars.  The  second-class  equipment  is 
usually  provided  with  serviceable  wooden  seats  and  the  third-class 
sometimes  with  cheaper  seats  but  frequently  with  benches;  iii  some 
instances,  particularlv  when  the  coolie  class  is  carried,  no  seats  of  any 
kind  are  provided.  Figure  24  shows  the  vestibules  and  one  end  of  a 
diner  on  the  Peking-Mukden  Kailway.  It  will  be  noticed  that  there 
are  no  steps  to  the  vestibule  platforms.  This  requires  all  station 
platforms  to  be  built  with  only  a  low  step  from  the  vestibule.  In  no 
instance  noted  by  the  writer  was  any  passenger  equipment  heated 
from  the  locomotive,  the  only  hose  connection  being  the  one  for 
airbrakes, 

PRMGHT  CARS. 

The  initial  equipment  on  the  first  Chinese  railways  (except  that 
purchased  from  America)  was  of  small  capacity,  and  much  of  it  can 
best  be  termed  goods  wagons,  but  the  tendency  has  steadily  been 
toward  eqmpment  of  greater  capacity  until  to-day  practicaUy  all  new 
freight  cars  are  of  67,200  pounds  or  30  long  tons  capacity.  All  the 
C  hinese  railways  use  the  British  practice  of  a  loading  gauge.  The 
size  of  equipment  is  somewhat  restricted,  and  it  would  appear  very 
desirable  to  increase  this  in  the  case  of  new  railway  construction  to 
permit  of  the  utilization  of  larger  equipment  as  the  traffic  develops 
—particularly  if  this  development  should  be  along  commoditv  lines 

[?gure  23  shows  a  freight-car  truck  (bogie)  in  general  useW  the 
reking-iiankow  line  and  somewhat  similar  in  construction  to  the 
locomotive  truck  shown  on  the  same  page.  Figure  26,  facing  page  1 1 6 
shows  a  typical  box  car  used  on  most  of  the  Chinese  railways.  It  w^as 
stated  that  tliM  type  of  construction  is  quite  satisfactory  on  all  the 
lines  north  of  the  Yangtze  River,  but  that  the  deterioration  of  the 
sneet  iron  on  the  southern  lines,  such  as  the  Shanghai-Nanking   is 


80 


BAILWAY  MATEBIALS,  EQtllPMENT,  AND  SUPPLIES. 


quite  Rcnous.  With  the  scarcity  of  lumber  in  China  however  tl,!, 
design  would  seem  to  have  much  merit.  The  low^nfusf  r  Jion  nn  ,{,« 
same  page  shows  a  tank  oar  of  a  type  n  inerarus^  bv  theX"^^^^ 
Oil  Co  and  the  Asiatic  Petroleum'^bo.  for  Sporting  reS  £ 

&"L  areo^pry.  -^  -^^  "-  -^y  —  froWe^'atn^^ 

CAB  Wita'wta 

The  British  have  used  their  typical  steel-tired  whe*.!  ,i«,«iw  -^*i. 

w^ra  of  all  classes  and  capacities.  The  Germans  have  ^one  the  S 
with  a  wheel  100  centimeters  (39.37  inches)  in  diameter  On  ^! 
American  equipment,  particularly  freichf  raram^f^^f  !i.  u  , 
have  been  o?  t6e  re^llar  cUXLSn  t^inTaccord W  To^fh'" 
information  obtainaTile,  have  given  sa^ffa^rv^'urV^S!  ^t  Jk" 
suggestions  that  the  wnter  heard  m on fin„rjl^  results.  One  of  the 
tbp  rfAai™».:i;«^  .^*Ti.  >^  neara  mentioned  a  number  of  times  was 
the^  deairabilty  of  the  Chinese  Government  Railways  adonting  s«^ 

rf.tlUn'^^/'^*'  of  car  wh«,l  as  can  be  satisf actoKr^Slith  a 
cmued  cast-iron  wheel  and  fb^n  mniHnn  *»,„:.  „     "  i""*'"^""   ."'".  * 

ThisseemsnrftcticftbU  whl  ^^°.  I  •^x*''^''^  "'^  ^"PP^y  «>*  wheeb. 
n«r.t!i  ^r!  F*^"'^^'^  when  one  takes  into  account  the  supply  of  iron 
ore  and  fuel  together  with  the  fact  that  many  of  the  Ctrn^  oh^n 
laborers  make  good  foundry  molders.  ^  *^  ^''P 

anmcBCABa 

On  account  of  the  large  amount  of  ehean  Inhnr  in  oil  t,^-^^  „*  m.- 
veiy  litUe  attention  hal  been  Sven  to  uwif^l;„„     ^^^  °^  ^^^ 
the  nrenent  AniiVnrn^  ;      i  ^  ?         labor-saving  service  cars,  and 
invX^S;,,^   Ff^"i.1  »l?»«»t  entu-ely  confined  to  that  which 

^lernHv^errSL^r^f ^'^'•'r  ""  ^''^^^  «^  ^°*-    One  of  the  m(^t 
EtimV,Tl,-Sr?f  "* /P^^'S  equipment  is  the  smaU  derrick  cm'. 

!E^^  ^^^  ^^  /?™  "'  *  «»»"  locomotive  crane     St^ 
shovels  and  steam  wrecking  cars  are  practical  I  v  nAv  oieam 

It  seems  proper  to  refer  now  to  the  history  ^d  Jpe'ckd  Ltures  of 
the  several  Imes.  The  foregoing  has  been  an  effort  to  co™r%ti?; 
general  characteristics    particullrly  the  comparaWe  feXr^'^'Sf 

many  of  the  lines  hZfeXZ^^S^  £lt'ori^  S  a^^^bJ'oM 

have  been  compUed  aU  aSe  &  Sed  alf  f^L^T" -'P*'  "'^"^^ 
dix.  beginning  on  page  26T  ''•''"S  P'^"**^*''  »"  together,  m  an  appen- 

»KING.Bn)KDEN  (CMING-FENG)  BAaWAY. 
LOCAnOM  AND  utent. 

TWs  line  connects  Peking  with  Mukden,  a  distance  of  524  miles 

Ott^f^te*/""^*!^  **  *^"  Chengyaiigmen  Gate  in  the  cS^S 
l^ity  of  Peking.    The  Chengyangmen  Qate  is  the  moat  imnonw 

feSn  0..^f  ^""^  City  and  is  within  a  short  XanTe^Cf  the 

fcfsouth^f^;«.^'/?^«f-*^r  r^^  ^t"***""  ''t  Peting  i^ 

Suiyuan   RaU^ayf  "S^unTthe^K''   wTh  'termla^'  ^'''^- 
Peking-Mukden  sUon  and  li^!^^\ndlfZ  bL^SZ  ZtA^n 


CHINA. 


81 


which  is  the  Peking-Smjnian's  main  station  just  outside  the  north- 
west corner  of  the  Tartar  City  of  Peking. 

At  Fengtai  connection  is  made  with  a  branch  of  the  Peking-Hankow 
Railway  and  with  the  East  Terminal  of  the  Peking-Suiyuan  Railway. 
Connection  is  made  with  the  Tientsin-Pukow  at  Tientsin  and  the 
South  ^fanchuria  Railway  at  Mukden.  A  very  important  branch 
leaves  the  main  line  a  short  distance  south  of  Sh'anhaikwan  and  runs 
to  the  ice-free  port  of  Chinwangtao,  at  which  point  the  Kailan  (also 
known  as  Kaiping)  coal  is  handled  to  seagoing  shim.  Important 
branches  extend  from  Kowpangtze  to  Yingkow  or  Newchwang  and 
from  Peking  to  Tungchow,  the  latter  being  practically  Peking "s  port 
on  one  of  the  grand  canals.  There  is  also  a  short  branch  from 
Lienshan  to  the  port  of  Hulutao  in  the  extreme  northwestern  part  of 
the  Gulf  of  Liaotung,  which  is  the  northern  part  of  what  is  usually 
known  as  the  Gulf  of  Chihli.  There  are  a  number  of  spurs  to  coal 
mines  of  the  Kailan  Mining  Administration  operating  the  Kaiping 


coal  field  at  Tongshan. 


HISTORICAL  SURVEY. 


Tlie  history  of  this  line  has  already  been  referred  to  at  some  length 

m  connection  with  the  Tangshan  Colliery  Tramway  started  in  1878, 

the  name  of  which  was  changed  in  1882  to  the  Kaiping  Railway  Co., 

with  Wu  Ting  Fang  as  general  manager,  and  agam  in  1887  to  the 

China  Railway  Co.,  extensions  being  made  during  each  interval.    In 

1891  the  name  of  the  Imperial  Railways  of  North  China  was  adopted, 

at  which  time  the  enterprise,  to  all  intents  and  purposes,  was  taken 

ovet  by   the  Imperial  Chinese   Railway  Administration.    At   the 

openmg  of  the  Chino-Japanese  war  the  line  was  completed  from 

Tientsin  to  Shanhaikwan,  with  an  extension  beyond  the  latter  point 

M»iring  completion.     The  outbreak  of  the  Boxer  uprising  found  the 

line  extended  to  Machiapu,  outside  the  Chinese  City  of  Peking,  and 

m  the  northeast  the  line  had  been  completed  to  the  neighborhood  of 

Chmehow,  with  the  construction  well  under  way  of  the  extensions  to 

Hsmmmtmg  and  Yingkow  (Newchwang)— about  30  miles  of  the  latter 

branch  havmg  been  completed  at  the  Yingkow  end.     During  the 

occupation  period  following  the  Boxer  uprising,  the  British  in  charge 

of  the  Pekmg  section  took  advantage  of  the  occasion  and  extended 

the  line  from  Machiapu  to  the  present  Chengyangmen  terminus  in 

the  Chinese  City,  as  already  mentioned,  the  line  runnmg  just  outside 

the  south  wall  of  the  Tartar  City  for  about  two-thirds  of  the  distance 

across  this  part  of  the  city.     At  the  same  time  the  branch  was  built  to 

IMngchow.    These  extensions  were  built  without  agreements  of  any 

kind  and  the  Chinese  accepted  them  without  protest. 

The  Boxer  uprismg  greatly  delayed  the  completion  of  the  New- 
chwang branch  and  the  extension  to  Hsinminting,  both  of  which 
were  finalJy  completed  in  1903.  The  connection  between  Hsmmin- 
ting  and  Mukden  was  first  a  narrow-gauge  3-foot  6-inch  line  built 
by  the  Japanese  duruig  the  Russo-Japanese  War,  but  by  agreement 
between  Japan  and  China  this  section  was  turned  over  to  the 
Imperial  Railway  Administration  of  China  in  1907,  and  the  gauge 
was  changed  to  4  feet  8i  inches.  I^ir.  C.  W.  Kinder  was  connected 
with  the  work  from  the  beginning,  mitil  liis  retirement  from  the 
position  of  engineer  in  chief  on  April  1,  1909. 

100229°— 19 6 


So 


lAILWAY  MATERIALS;,  BQIIIFMEMT,  AHD  SUPPLIES. 

TOUICB  OP  CAFITAI.. 


CiimA. 


83 


The  ormnal,  eapittil  used  was  in  coimection  with  the  devolim- 
.meiit  of  the  A.aipmg  coal  field  and  was  iargelv  Chinese,  but  with  a 
coiisideraMo  British  .■interest  and  under  British  supervision."  Moneir 
was...  later  sacttred  from  various  sources  until  the  British  loan  "for 
16,000,000  taels  was  made  in  1898.  at  which  time  the  priiicinal 

Banking  Corporation,  tota  mg   l,24O..000  taels,  the  Russo4^hi,lese 
Oiow^  Russo-Asiatic)    Bank,    600,000     taels,    and     the    Deutnciv 

Aswtische  Bank  7004)00  taels..-~a  total  of  2,540,000 '  taels,  all  "of 
which  was  refunded  with  the  above  loan.  " 

As  shown  ty_*»J«, tabic?  on  pa^e  53,  the  total  investment  assets 

lA'^'2^^.^^^^''¥''?.^'"^^*y'  ^^^^^^r  ^h  1916,  amounted  to 

W0,46^,.57/,  against  which  theie  are  outstanding  obligations  amount- 
m;g  to  I43v480,007~-€hinese  shareholders,  $26,142;  Chinese  Govern- 
ment $25, ,903,392;  Briiisli-held  bonds,  119,320,000;  and  Japanese- 
held,  bonds,  $230,47.3.     It  will  be  noticed  from  this  that  t^Ze 

iiwstnient  assets  of  this  property  amounting  to  I16,«}87.570  for 
w,h,ich  there  a,re  no  outstanding  securities.  ' 

WtHKIfT'  COWmOL. 

^  Miilo  the  provisions  of  the  agreement  of  1898  are  still  norainallv 
m  force  ,and  a  Brit,LsIi  engineer  in  cliief  is  in  charge  of  the'  property 
on  account  of  the  great  margin,  of  safety  on  this  loan  there  have 
been  conce&sions  of  consitlorable  extent  to  tlio  Chinese  in  the  control 
and  management  of  this  system,  particular! v  as  to  the  releasin,ff  of 
«:»  surplus  funds  to  the  Chinese  'Government  for  other  uses  '  One 
Buehnm  has  been  the  building  of  the  Peking^Suiyuan'  line  with  the 
profits  from  the  operation  of  the  Peki,n,g-Mukden  system.  Thus  far, 
However,  the  B,rit»h  have  ,r©t,amed  .rather  closely  the  prerO'O-atives 
m  to  purchase'  of  matftri,al,s,  equipment,  and  ^. supplies. 

c:ha,iii,ct:mi  Of  niAfnc. 

'The  operating  receipts  for  191,6  amounted  to  S14.542,,518,  of  wliich 
46  per  cent^w'as  from,  passenger  traffic  and  54  per  cent  from  freight 

bus,ittes8.  ^  Ot,her  revenues  are  .not  included  in'  these  figures'  'but  'are 
,in,€luded  in  the  gross,  ©anilngs  shown  in  the  table  on  page  57. 
,lieferen:ce  has  ,already  b©en  made  to  the  djisses  of  passenger  travel 
and  the  division  of  earnings  in  tUs  connection.  Sixty-f our  per  cent 
of  the  tonnage  carried  and  42  per  cent  of  tlie  ,r0venue  'for  1916 
represented  mineral  products  (largely  coal),  10  per  cent  of '  the 
tonnage  wid  23  per  cent  of  the  revenue  .agricultural,  products,  and 
9  per  .cent  ol  the  to,nnage  and  17  jwr  cent  of  the  revenue  manu- 
factured  products. 

PBESENT  ,rEof  rrs. 
For  the  year  ended  December  31,  1916,  the  operating  revenues 

1 rf!L'"51'*^f^l  ""^  \f^''^^^^  ^>^*  <>F™ti,ng  expenses  were'  'also 

,ie<,luce5l  .11,626,023,  so  there  wm  a  balance  to  net  revenue  from 
opw-afcions  of  .18,856,148.  Th,e  operating  ratio  w.as  .reduced  from 
49.61  per  cent  m,  1915  to  40.32  per  cent  in  1916. 

TIm:  opera,ti.n.g  ratio  of  this  lin.e  has  alw,ays  been  very  low  and  the 
results  prohtable,  and  there  is  no  doubt  that,  with  proper  m,ana"e- 


ment,  tliis  will  remain  a  very  profitable  railway  property  in  the 
lUiiure. 

At  the  present  writing  no  extensions  of  this  system  are  contem- 
plated and,  so  far  as  can  be  predicted,  none  are  likely  to  bo  under- 
taken, except  short  branches. 

ROADWAY  AND  TKACK  MATEEULS. 

All  construction  and  maintenance  methods  and  materials  aro 
along  the  recognized  lines  of  British  practice.  PracticaUy  all  the 
bridges  are  permanent  structures,  and  recently  all  structural  require- 
ments have  been  fabricated  at  the  Shanhaikwan  bridge  works  of  the 
railway.  The  bridge  over  the  Liao  River  about  40  miles  from  Mukden 
consists  of  twenty  100-foot  spans,  is  one  of  the  longest  bridges 
in  China,  and  was  fabricated  at  the  above-mentioned  bridtre  works 
The  track  is  laid  mostly  with  85-pomid  rail  and  is  generally  well 
ballasted  with  broken  stone.  A  number  of  places  were  noticed 
where  rail  anchors  could  have  been  used  to  much  advantao-o  to 
prevent  rail  movement,  but  apparently  little  had  been  done  toward 
anchoring  the  rail.  All  track  is  laid  with  square  joints,  in  accord- 
ance with  the  general  British  and  Continental  practice. 

KOIXING  STOCK. 

For  some  years  past  most  of  the  rolling  stock  for  this  line,  with 
the  exception  of  a  few  iimerican  locomotives  recently  purchased 
has  Ijeen  erected  at  the  Tangshan  shops.  Most  of  this  rolluic  stock 
conforms,  m  general,  to  British  practice,  and  the  materials  used  are 
largely  from  British  sources.  A  certain  amount  of  this  equipment 
has  been  budt  along  the  special  lines  followed  in  China,  but  there 
13  a  growuig  tendency  toward  the  use  of  freight  cars  of  lar^^er 
capacity,  and  most  of  the  recent  equipment  has  been  built  w?th 
four-wheel  trucks  (bogies).  Figures  26  and  27  show  some  of  tho 
equipment  budt  at  these  works  in  recent  years. 

The  average  tractive  capacity  of  the  Peking-Mukden  passenc^er- 
seryice  locomotives  is  approxunately  20,000  pounds  and  that  of  "tho 
freight  locomotives  about  31,000  pounds.  The  average  capacity 
ot  passenger  cars  is  about  65  people  per  car  and  the  average  capacifc v 

fJ'^y^ll  •'*''"  ^^""^  ^^'f  *^  P?^^^  r^  ^^^-  Nearly  "all  freight 
cars  bmit  in  recent  years  have  been  of  66,800  pounds  capacity,  or 
30  long  tons,  and  very  few  four-wheel  wagons  Uve  been  built  for 
some  years.  ^  ^^^iv  mi 

WORKSHOPS. 

«i3.!   P/^^^^P^   workshops   are  those   at   Tangshan,  which  have 

anaSd  3  S'^^'^'u  ""  ''^^!'  ""{  '™^?-  ^^^'^  ^W  are  well 
Ks^S  1  fll  ""'^^^  n^^Wed  and  are  in  close  proximty  to  the 
ThZxLl  fi^^l<i»  ^9»fing  a  cheap  and  reliable  supply  of  fuel. 
These  ^%wks  are  not  only  capable  of  handlmg  all  classes  of  repairs 
to  the  rolhng  stock  of  this  system  but  have  in  the  past  built  a  con- 
Sr^i  w?n'^  ^^  '^"  ?^*'^'^  stock,  particularly  passenger  and  fre^ 
iSC  sicrr'^L^Tr'^T-^^^  '^'^  othc^  Chinese  Government 
ircoT;Hfnn\rfwf  ^^^'l^-^'^'J^^^  ^^nd  Kirm-Changchun  lines. 
miXr^f  T  ^^^  ^^"^  administration  of  the  shops  there  is  a  small 
rr^fl  Europeans,  all  of  whom  are  British,  but  not  enough  by 
any  nxeans  to  take  care  of  all  the  details  of  management.  ^  con^ 


Ill 

111 


84 


lAILWAY  MATERIALS,  BQIJI^MEN'T,  AMD  SUPPLIES. 


CHIKA.. 


siclermblo  number  of  Cliinosc  are  employed  in  administrative  and 

tedimcal    positions,    and    all    power-plant    engineers,    cranomcn. 


led  bj  Japanese.  These  latter  works  will  be  specially  referred  to 
Uter  m  connection  with  the  South.  Manchnria  Railway  Co. 

Common  daj  labor  at  the  Tangslian  shops  is  paid  $0.30  Mex. 
Kxpcnonced  shop  artisans  are  paid  from  $0.70  or'  10.80  up  to  f I 
Mex.,  and  workmen  such  as  the  best  boilermakei-s  are  paid  as  high 
as  $1.30  Mex.  Employees  called  "No.  2  men,"  who  are  really 
foremen  of  then-  respective  sections,,  are  paid  $54  Mex.  per  month. 
These  men  are  next  to  the  general  foremen  of  sliops,  who  are  either 
foreigners  or  educated  Chinese  whose  salaries  come  under  recrula- 
tions  established  by  the  Ministry  of  Communications.  '^ 

TINGSHAN  KAItWAl  AND  MWING  COLLBOIL 

^  Education  of  Chinese  for  administrative  and  technical  positions 

m  railway  service  was  first  undertaken  at  Shanhaikwan.  In  1907 
arrangements  were  made  wth  the  Chinese  Engineering  &  Mining 
Co.,  now  the  Kailan  Mining  Administration,  and  the  Tangshan 
Railway  and  Mmmg  College  was  established  for  the  education  of 
Chinese  railway  and  minmg  engineers.  The  present  buildings  take 
care  of  about  160  students,  including  boarding  accommodations- 
▼ery  comfortable  residences  are  provided  for  the  president  of  the 
college  and  the  members  of  the  faculty,  of  whom  at  present  two 
are  British  and  two  American.  The  establishment  of  this  institu- 
tion was  due  largely  to  the  foresight  of  the  late  president  of  the 
Chinese  Republic,  Yuan  Siiih  Kai,  who  at  that  time  was  Viceroy 
of  the  Province  of  ChiMi.  •' 


85 


111 


OIQAH BAnON  ANB  .mtSONMEL. 

The  promulgatod  organization  of  this  Ime  has  ah-eady  been  given 
detad  on  page  65.  The  foreign  staff  on  this  railway  is  entirely 
British,  and  the  agreement  of  1898  is  still  in  force,  providing  that 
the  engmeer  in  chief  and  the  chief  of  accoimtants  shall  be  British 
subjects.  As  a  result,  the  teclmical,  foreign  staff  has  always  been 
almost  entirely  British. 

^  A  directory  of  the  principal  officials  in  the  Peking-Mukden  organ- 
ization 13  given  on  page  261.  There  are  also  given  the  names  of  the 
Ljondon  agents  and  the  consulting  and  inspecting  engineer  with 
offices  in  London. 

PIIBCIULSE:  OF  STOKES. 

The  purchase'  of  all  classes  of  stores  is  done  by  the  stores  superin- 
tendent under  the  dwection  of  the  engineer  in  cliief.  The  stores 
supeimtendent  and  the^  .general  stores  depot  are  located  at  Hsinho, 
about  25  miles  fiom  Tientsm  and  near  the  Takn  anchorage,  which 
18  the  point  where  ocean  vessels  discharge  much  cargo  instead  of 
going  up  the  Pei-ho  to  Tientsin.  The  policy  of  this  line  in  normal 
times  IS  to  purchase  imported  suppliea  so  fai  as  practicable  from 
Bntish  sources. 


PEKMCSUIYUAN  (KIN-SUI)  RAILWAY. 

LOCATION  AND  EXTENT. 


This  line  connects  with  the  Peking-Mukden  and  Peking-Hankow 
Kailway  at  Fengtai,  runs  along  the  west  waJl  of  the  Chinese  and 
lartar  Cities  of  Peking  and  then  extends  in  a  northwesterly  direction 
to  Nankow,  over  the  West  Hills,  via  Nankow  Pass,  to  Kalgan,  thence 
frnm  &tl?i  ^^f  ^  ^^^^s^^^^'^stem  terminus,  Fengchen,  266  miles 
A  ™i.-^  ^  ^ :  .•  Mentowkow  branch  leaves  the  main  line  at 
Hsichihmen  station  at  the  northwest  corner  of  the  city  of  Pekini? 
reaching  important  coal  deposits  16  miles  distant,  in  a  westerly 
direction  There  is  also  what  is  called  the  '^ Round  Pekin^r  City 
Branch,  connecting  with  the  main  line  at  this  last-named  Itation 
and  running  along  the  north,  east,  and  south  walls  of  the  Tartar 

i.ity  and  going  into  the  Cheng3rangmen  station  of  the  Pekin<^-Mukdcn 
Itailway.  *=      ^'^^^u. 

Kalgan,  after  Peking,  is  the  most  important  point  on  this  line 
ivalgan  is  the  present  terminus  of  the  caravan  travel  from  Mongolia 

f^V""  T""^  "^^^^  '\''''^'  ""^  *!'^  ^^^^  interesting  places  of  trade  in 
China.  For  an  mland  town  the  population  is  very  mixed,  and  the 
number  of  articles  traded  in  is  very  varied,  including  hides,  fura, 
wool,  camel's  hair,  and  similar  commodities.  '         ' 

This  line,  in  crossing  the  West  Hills,  rises  on  a  3J  percent  CTade 
or,  as  It  IS  usually  expressed  in  this  part  of  the  world  a  grade^of  1 
l.t^'  f^-^^"^^  mentioned,  this    part  of    the   line   is   through 

Z^J^^'T^^'''  T^'^^y-  ^^  remainder  is  through  fairly  eafy 
strnctiJr     ^  '''"^    '''"''*'''^  ^'^"^  ^^'  standpoint  oi  railway  con^ 

mSTOHICAL  SURVEY. 

fuJdfpo^^i^lf'  buOt  entirely  by  Chinese  engineers  and  with 
imids  controlled  by  the  Chinese  Government.  The  construction 
was  started  m  October,  1905,  and  was  completed  to  thHoTow^n" 
^tTJ^J^  «der  and  dates  shown:  To  kankow  in  September" 
1906;  to  Kalgan  m  September,  1909;  to  Tunchun  in  June^mT  to 
Chan^m  m  April,  1912;  to  Tatungfu  in  April,  1915-  and  to  Fo'nc^ 
Chen,  the  present  toiminus,  in  September,  1915        ^^»'  a^l  to  l-cng- 

l>r.  Jeme  T^en-YowS  who  graduated  fiom  Yale  in  1881  and  has 
since  become  the  most  prominent  Chinese  civU  engineer  (be W  now 
d^rin^*"'  ^^T'^  ■''^  the  Hukuaijg  KaUways)  u^  chiK|iSeJ^ 
during  the  construction  to  Kalgan.  Mr.  K.  Y.  Kwone  who  I3n 
ated  from  Ma^achusetts  Institute  of  Technology  in  °  881  Ind  l^ow 
chief  engineer  of  the  North  Section  of  the  Ti^5tsS-P^,knw  R»^w 
was  chief  engineer  during  the  constructiorto  fSc^  "^''"^' 

ine  LJunese  have  good  reason  to  be  proud  of  the' buildino^  nn«l 

rd"h''rbl?^u^77i,"^'''^  vi";-^^^^^^^ 

^iWui^kLrifl"^^  operated  from  the  standpoint  both  of 

ThrhisS  stSmlf^tSflf^  retuiTjs  on  the  cost  of  construction. 

«e  mstoncai  statement  with  regard  to  these  linfi<i  in   tha   ioik 

annual  report  seems  of  sufficient  interest  to  waS  X  ouott^ 

Jj  Uie  foUowmg  part«,  which  are  literal  translations  froLJhe  E"J 


PEKINO-KALQAN  SECTION 


^^^^^^^^^^N^^-Tht  death  of  Dr.  J«m«  has  recentFi^;^^:^^^^^ 


«»i«lMHiailii 


86 


BAILWAY  MATERTALS,  EQIJIPMEHT,  AKD  SUPPLIES. 


tlie  Throne  for  aiithorily  to  coTOtnict  tliis  line  witli  purely  Chinese  funds,  and  the 
c'tmatniction  work  was  aleo  to  he  undertaken  enl.irelv  hv'C'liineee  offieere,  withoft 
enjjapne  any  foreign  experts.  Consequently  Dr,  Jeme  Tien-Yow  was  mepially 
dtHiiited  m  the  engineer  in  chief  to  conduct  the  said  'COiistruction  mlelv. 

The  work  was  commenced  on  the  ninth  moon  of  the  thirty-first,  year  of  KwangBii 
f  IflOS),  and  the  entire  line  wiw  completisd  on  the  eighth  moon  of  the  first  year  of  Henan 
Tiinff.,  m  period  of  four  ^^eare. 

This  waa  the  first  railwmy  that  wai^  huilt  by  purely  Chineiie  oflTicerB.  and  it  waa 
ereatly  admired  by  both  European  and  American  touristn.  The  distance  of  tliia 
line  was.  357  li  (122  miles), or  449  Ii,if  sidingsaro  included.  The  whole  underUking 
eopt  7„a55,.0OO'  taels  or  therwibouta.  The  funds  for  the  coiistruef,ion  of  the  Pekini?- 
Kalgan  line  were  appropriated,  yearly  .out  of  the  surplus  enraings  of  the  Pekiuir- 
.Mukden  line,  after  ded.uction  of  the  payments  of  the  six  months*  interest  and  capitiil 
for  the  loan.. 

.EA,L!Cl AH-i'tf lYUAN  8,1CTI0.N . 

.Ab  the  Peking-Kalgin  Railway  was  nearinis:  completion,  the  Bmrd  of  Comniuni- 
catioM  "wmi  .meditating  the  extension  of  this  line  from  Kalgan  to  iTga  (Kulun)  or  to 
.Suiyiiancheng.  But,  considering  the  scarcity  of  goods  between  Kalgan  and'Urga, 
It  was  thought  more  convenient  to  extend  the  line  to  Kweihwa  and  Suiyuancheng. 
Moreover,  from,  the  itundpoint  of  business  import.ance,  if  extensions  were  made  from 
Kal,i5in  to  Tatung,  Fengchen,  Rweihwa,  and  Hokow,  which  are  all  busy  com.mereial 
centers.,  locally,  we  should  be  .able  to  obtain  the  advantage  of  easy  trons^portation  of 
coal  and  foodstuffs  from.  Tatung  and  Yangkow;  afar,  we  also  would  have  the  chance 
to  collect,  the  furs  and  livestock  of  IJrga,  and  XiuKlisia..  Furthermore,  in  the  future 
pMsengem  as  well  as  :good.s  from  tbe  west  and  nprth  might  be  "gathered  together  like 
clouds."  Hence,  huge  profit8.for  the  raa:iniy  might  reawnably  be  expected.  The 
extension  work  of  this  line  was  approved:  by  Imperial  8«n.ction  in  the  seventh  moon 
of  the  .first  year  of  H.8u,an  Tung  (1909)..  The  construction  be^n  on  the  t.hird  moon 
of  the  second  year  of  H.BU.an  Tu.ng  (1:910).  The  length  of  the  1  ine  was  689  li  (235  miles), 
.and  the  estimated  cost  of  the  construction  work  was  16.060,000  taels,  or  approximately 
that.  The  funds  for  the  confltruct:ion  of  this  line  were  similarly  a.ppropriat,ed  by 
insta,llment«  out  of  the  aB.fpln8  einainp  of  the  Peking-Mnkden  'Railway,  and  the 
lemainder  wail  to  be  made  up  out  of  the  earnings  of  the  Peking-Kalgan  Railway. 

The  extension  of  the  Changsui  .Railway  wiw  approved  bv  the  Imperial  Government, 
under  the  anmlgamated  management  of  the  officers  of  t.,he  Peking-Kalgan  Railway 
wit.h  The  tempjfiify  :i»ine  of  **Chiuipui  Extenfdon."  without  ha¥inga.i»piiia.te  admiiil 
istnition  for  this,  line,  in  order  to  prevent  unnecesearj-  expenditure. 

PEDM'O-MINTOWKOW  BBAM'CH  Ulf'l. 

In  the  western  hills  of  the  capita!  tho  coal  products  were  so  rich  th.at  hitherto 

people  and  merchanta  of  this,  locality  .have  relied  upon  the  coal  as  their  means  of 
livelihood.. 

A. 8 ^transportation  of  coal  depended  solely  upon  •ca.mels,  the  freight  on  coal  was  high 
and  its  conaumption  limited.  Conaeqneiitlv  the  merchants  jointly  petitioned  the 
Board  of  Trade  that  ah«eSi  8hoo..ld  bo^  stibscii.bed.  by  merchants  for  constructing  this 
branch  line  with  a  view  to  developing  the  coal  trade.  But  the  MiuisU'*.r8  of  the  Board 
of  Trade  were  afraid  tbat  if  the  capijal  were  subscribed  by  merchants.,  bad  results 
might  ensue  as  a  result  of  miamanag©,ment,  since  this  was  an  im.portant  location  near 
the  .Imperial  (..'apital. 

Therefore  this  .kin.d  of  branch  Une  sh.ou,H  he  conatructed  out  of  Govemnient  fimda. 

At  length  Lmperial  sanction  was  obtained,  to  have  jthe  conitnirtion  of  thij  brancli  .line 

carried  out  simultaneously  with  that  of  the  Peking-Kalgan  Railway,  the  length  of 

■'  thip  branch  line  being  40'  odd  li  (16  milea),.  and  the  cost  of  its  construction  being  more 

than  '5t>i,000  tae.ki.. 

MOOND-a'TT  .■MA.MCH  LIM.1. 

The  m.aln  linC'  of  thia^  railway  originates;  from  Pengfiiij,  passing'  Kwanganmen  and 
li.sichihnien  «  the  capital  in  a  northerly  direction.  Tlid'inhabitiati  .Hiring'  neat 
'these  locali..tie8  enjoy  tlie  privilege  of  traveling  by  train,  while  those  fnmi'tiie  various, 
places  in  the  eastern  and  northern  parts  of  tlie  city  are  still  experiencing  great  incon- 
veiuence  in  traveling  by  rick3h.aw8,  mule  carts,  and  carriages.  In  the  third  year  of 
the  Repubhc  of  China  (1914)  the  Ministry  of  Communicafions,  in  order  to  improve 
twnsportation  facilities  in  the  metropolitan  municipa,lity,  petitioned  the  Government 
for  authority  to  construct  a  .roimd-city  branch  line.,  propo3i.ng  that  the  cons.truction 
work  and  the  ,rai8i..ng  of  .fundi  be  undertaken  bv  the  Peking-Kalgan  Railway.  The 
,petiti.on  waa  approved  .in  a  mandate  issued  on  the  28th  day  of  May  of  the  same  year. 


CHIKA.  §7 

Accordingly  the  line  wag  snnreyed  and  estimates  and  plana  were  prepared-  but  the 
construction  work  was  temporarily  postponed  for  want  of  funds 

In  March  of  this  year  this  administration  received,  through  the  Ministry  of  Com- 
muiucations,  inatmctioiw  from  the  State  Department  as  to  the  necessity  of  haying  a 
branch  hne  from  Hsiciiihmea  to  Chengyangraen  conatructed  at  the  earliest  noa«.ibIe 
date  Consequently  the  work  was  begun  on  the  16th  day  of  June  and  the  time  fixed 
for  Its  connection  with  the  Tungchow  Junction  of  the  Peking-Mukden  line  at  Tun*-- 
diihmen,  and  thence  to  Chengyar^:men,  was  six  montha.  This  line  passes  en  route 
the  four  gates  namely,  Teshingmen,  Antingmen,  Tungchihmen,  and  Chaoyangmen. 
covenng  23  h  (7  miles).    The  cost  of  construction  was  e?timated  at  441,000  odd  dSE 

SOURCE  OF  CAPITAL. 

As  alreadv  stated,  this  Hne  has  been  built  entirely  with  Chine^-c- 
conti-olled  funds  and  mostly  from  surplus  earnings'  of  the  Pekin**-- 
Miikden  Railway.  In  two  mstances  short-time  loans  were  made 
but  these  were  paid  out  of  1914  earnings,  and  during  the  latter  part 
of  1917  a  one-year  loan  for  11,000,000  was  floated  in  China.  In  the 
summer  of  1918  a  new  short-time  loan  was  advertised,  being  for 
$4,000,000  at  7i  per  cent,  repayable  by  annual  drawings  of  $1,000,000 
each  year  to  1922,  inclusim  s       *•  ."  ";""" 

PRESENT  CONTROL. 

The  present  control  is  entirely  in  the  hands  of  the  Chinese  Gov- 
ernment, 

CLA»5  OP  ■TRAFFIC. 

Revenue  from  freight  on  this  line  constitutes  about  75  per  cent  of 
the  earmngs,  leaving  25  per  cent  for  passenger  business.  This  is  tlie 
largest  proportion  of  earnings  from  goods  business  on  any  of  the 
lines  of  the  Chinese  Government  Railways.     The  preponderance  of 

vTlTM\^r'^^A^^^i^^  and  the  Fengtai  connection  with  the 
Peking-Mukden  and  Pekuig-Hankow  railways,  this  giving  the  ad- 
vantage of  a  down-grade  haul  oyer  the  West  HiEs^  .V^icultural 
and  pastoral  products  constitute  the  largest  part  of  the  bSiness. 

PIMSENT  PROFITS  AND  OUTLOOK  FOR  FUTURE. 

fJt^  ^^i^^'^'^^I^^T  ^^i^^Jin^  ^  K^tean  it  has  shown  a  satis- 
factory profit,  and  wdl  no  doubt  continue  to  do  so  in  the  future,  par- 
ticuJariy  if  branches  are  bmlt  as  contemplated  and  the  growing  of 

iw  rlsTwlfh  ?h!^rt'/^°^  '^^  ^fV'  deyeloped,  such  Ts  is 
ZL!n  tL  ■  ^  ^'''^f''  crop  raised  between  Ifeuanhuafu  and 
tfteen^a^^Xrf  ^'^  ^'"^^  '^^  ^^^  Peking-Kalgan  section 


Items. 


H  unhies 

h  vjxmses 


1913 


J'lu.'k:;. 


Mex.  Mts. 
2,86rt,400 
1,298,025 

1,567,375 


1914 


Mei.  dolls. 
3, 755, 000 
3,114,000 


1915 


641,000 


Mex.  dolLf. 
2,721,500 
2,052,700 


G<t8,8()0 


EXTENSIONS. 


As  Stated  above,  two  short-time  loans  were  included  in  the  1014 
expenses.     The  continuation  of  the  line  is  already  uSder  cons£^^^^ 


8G 


KAILWAY  MATERIALS,  EQUIPMENT,  AMD  SUPPLIES, 


I   I 


from,  the  present  terminus  at  Fengeben  to  Suiytiae,  nhich  is  a  con- 
eicipra'ble  carm¥an  center.  .Although  it  is  somewhat  smaller  than 
Kiilgan  and  not  so  important  at  present,  it  is  quite  probable  that,  on 
account  of  its  being  farther  in 'the  interior,,  Suiyuan  may  in  time 
attain  equal  or  greater  importance.  'This,  of  course,  would  be  of , 
advantajsre  to  the  railway  because  of  the  lonojer  haul  and  the  clown 
grade.  It  is  also  probable  that  other  branches  will  be  built  in  ilio 
lut/ure,  particularly  in  a  southwesterly  direction  from  Tatung,  jiut 
on  account  of  the  clevelopment  of  caravan  travel  it  would  seem  wise 
t.o^  malve  the  extension  slowly,  for  the  re^ason  that  a  relatively  small 
railway  mBeage  will  probably  serve  this  part  of  China  adequately 
for  a  good  many  years  to  come.  Tins  viewpoint,  of  course,  doas  not 
tal-:c  into  account  military  or  |)olitical  considerations,  which  are 
entirely  ontside  the  scope  of  this  report. 

Tlie  bridges  for  this  line  were  largely  fabricated  at  the  Shanhaikwan 

bridge  works  of  the  Peking-Mukden  Railway.  The  rail  and  joint 
material  came  largelvfrora  toe  Han-Yeh-Ping  steel  works  at  Hankow. 
The  weight  of  afl  rail  is  85  pounds  to  the  yard.  The  Sandberg  sect  ion 
w«  used  at  first,  but  for  some  j^ears"'  the  standard  Chinese  section 
■shown  on  page  75  has  been  used  instead.  A  good  many  of  the  require- 
ments, such  m  switch  stands^,  have  been  purchased  iii  America  from, 
time  to  time. 

ILUMO  STOCK. 


CHIXA. 


o*l 


The  greater  number  of  locomotives,  on  'this  .line  are  of  American 
manufacture.  ,As  already  stated,  the  average  tractive  capacity  of 
,all  locomotives  on  the  Pekin«»-Suivuan  Railway  is  about  50  per  cent 

freater  than  the  average  on  the  otfier  lines  of  the  Chinese  Governm,ent 
Railways.  The  passenger  locomotives  for  this  line  average  about 
30,000  pounds,  the  freiglit  locomotivt»  about  35,500  pounds,  and  the 
Bwitchi,ij|  (shunting)  locomotives^  about  15,750  pounds. ""  On  the 
Peking-Kalgan  section  the  passenger  locomotives  are  about  34,700 
pounds,  ana  the  average  of" the  freight  locomotives  is  about  35,800 
pounds,  though  some  of  the  latter  run  to  more  than  70,000  pounds. 
The  CMneso  are  quite  proud  of  the  fact  that  the  heaviest  locom,otiv€« 
in  use  in  the  Far  East*  are  the  Mallet-type  engines* in  service  on  the 
N'ankow  grade,  built  by  the  American  'Locomotive  Co.  There  are 
also  in  use  on  thk  same  .grade  six  Shav  geared  locomotives,  but  W 
experience  it  h,as  been  found  that  tractive  engines  will  do  the  work 
satisfwtorilv  under  ^all,  weather  conditions.. 

M«t  of  tne  passenger  and  freight  car  equipment  of  this  line  was 
built  at  the  Tongshan  shops  of  the  Peking-Mukden  Railway,  although 
a  relatively  sm,ail,  amount  is  of  American  manufacture. 


WORKSHOFS. 


The  principal  workshops,  are  located  at  Nankow,  but  there  are  also 
shops  of  considerable  importance  at  KaJgan.  With  the  extensions  to 
this  system  and  the  necessary  amount  of  additional  equipment  on 
account  of  the  growing  traffic,  these  shop  are  not  sufficiently  equipped 
with  shop  machinerj  and  power  to  handle  the  work  to  the  best  advan- 
tage and  with  sufficient  expedition.  There  are  apt  to  be  delays  in  the 
shops,  involving  equipment  that  is  needed  for  handling  the  traffic 


Additional  machine  tools,  with  required  power,  are  needed,  and  a 
system  of  compressed  air  with  air-working  tools  would  be  a  great 
a.sset  in  putting  the  boilers  of  the  large  locomotives  through  the  siiopa 
more  quickly  than  with  the  present  hand-working  methods. 

ORGANIZATION  AND  PERSONNEL. 

The  nominal  organization  of  this  jine,  because  of  there  being  no 
foreign  contract  employees,  conforms  rather  closely  to  the  regulations 
promulgated  by  the  Ministry  of  Communications.  During  the  last 
few  years,  however,  there  have  been  several  chancres  in  the  position 
of  managing  director  of  this  line,  as  well  as  a  considerable  number  of 
changes  m  both  the  organization  and  the  personnel.  In  other  re- 
spects, very  capable  engineering  and  management  have  prevailed  on 
this  railway  both  during  its  construction  and  in  the  course  of  its 
maintenance  and  operation. 

On  page  262,  foDowing  the  Peking-Mukden  directory,  there  is  a  list, 
with  addresses,  of  the  present  principal  officials  of  this  line. 

PURCHASE  OF  STORES. 

The  general  stores  depot  is  located  at  Nankow,  about  25  miles  from 
Peking  Under  the  supervision  of  the  managing  director  the  pur- 
chase of  stores  is  handled  by  a  superintendent  of  stores  whose  office 
IS  m  the  general  stores  depot  at  Nankow.  In  the  purchase  of  stores 
for  this  line  preference  is  given  to  Chinese  products,  but  in  the  case 
of  requirements  that  need  to  be  imported  this  raOway  has  always  been 
vet-y  favorably  inclined  toward  the  purchase  of  American  goods. 

THENTSm-PUKOW  (TSIN-PU)  RAILWAY. 

LOCATION  AND  EXTENT. 

.^^fl"^  pT*'';^"^  1°"^^  '^""v.  J*»«  °°rth  end  at  Tientsin  connects 
with  the  Peking-Mukden  hne.     The  south  end  terminates  at  Pukow 
across  the  Yangtze  River  from  Nanking,  at  which  point  ferry  con- 
nection IS  made  with  the  Shanghai-NanWng  line.     Tliis  line  north  of 
the  Yangtze  River  serves  practicaUy  the  same  tenitory  as  the  Grand 

snnl»r*'"'**l>?  *'"'  %"P^  ^PV>^^^^>  KuWai  Khan,  more  than 
^a^n^J'^^^"^  provided  an  iiiland  waterway  from  Hangchow 
to  Peking  This  canal  was  used  for  transporting  to  the  imperial 
court  at  Peking  the  grains,  silks,  and  other  products  from  the  rich 
S'^'^V^uin^  Southeast  China.  The  distance  fiom  the  central  sta?  on 
at  lientein  (where  connection  is  made  with  the  Pekin<'-Mukden 

R«S    J^     .'' w""^^  J^  Shantung  ("Santo,"  Japanese  name) 

i«^/™^'  **■  Hsuchowfu  connection  is  made  with  the  Pienio 

system,  v*«w 

msTOBICAI.  SUBVBY. 

t;.^®  original  concession  was  for  a  railway  from  Tientsin  to  Chin- 
Son  ^nrTif^  ^^^^t*  i"*  a  Chinese  named  Yung  Wing,  with  per- 

■?hiinnfio    Shanghai-Nankmg  RaUway,  the  southern  terminus  of 

J  Rivi  from  ±"ir'  \^^^r'\  ^'^''^^  '^  '^"^^^y  '"''•^  the  Yangtze 
J  lliver  from  the  Shanghai-Nankmg  terminal.     Yung  undertook  to 


90 


RAIT.WAY  MATEEIALS,  BQtllPMEWT,  ANB  SI7PPLTES. 


raise  the  ncf essar,y  capital  in  England  and  America,  but  when  Ger- 
many seized  Kia<>chow  the  Kaiser's  Government  demanded  pref- 
erential rights  for  tdl  railway  concessions  in  the  Province  of  Shantung 
and  the  contract  that  Yung  had  made  for  $27,500,000  gold  had  to  bo 
canceled  on  account  of  German  objections.  During  tlie  '■VBtittle  of 
Concessions'"  Germany  affeed  to  confine  its^  railway  activities  to 
Shantung  and  the  Hwang  Mo  (Yellow  River)  Valley  and  England  to 
the  Yangtze  VaJJey,  and  a  worl^ing  agreement  was  reached  that  Ger- 
many shouM  finance  aiwl  construct  t.he  northern  section  of  "the 
Tieiitsin-Pukow  line,  from  Tientsin  to  the  southern  boundary  of 
Sliaiitung,,  a  distance  of  390.5  inOes,  and  that  England  should  finance 
and  constnict  the  southern  section  from  the  above  boundary  to 
Pukow,  a  distance  of  236.5  miles.  This,  arrangement  has  been  'con- 
tinued up  to  the  present  time  in  the  maintenance  and  operation  of 
the  line,  though  there  is  apparently  no  reason  why  one  organization 


should  not  handle  tlie  situation  economically  and  satisfactorily  in 

0vpry  way. 

Tfie  preliminary  agreement  was  not  finally  negotiated  until  May, 
1899;  before  the  final  agreement  was  concluded  'the  Boxer  uprising 
occurred  and  negotiat:ions  were  suspended  until  1902;  the  final  agree- 
ment, .as  shown by  appendix  6,  was.  not  formally  signed  untOJan- 

tiary,  190S.    The  conditions  of  this  loan  are  known  as  the  ''Tientsin- 
. jr  ujtkO  iv  J.  eirma  ■ 

amilCK  OP  CAPFTAL. 

As  already  stated,  the  loan  funds  were  furnished  in  accord^ance  with 
the  Anglo-Cierman  agreement  of  January,  1908.  The  general  balance 
sheet  for  D'ecember  31,1 916,  shows  the  investment  assets  .as  amounting 
to  $99,803,208,  against  which  there  are  outstanding  capital  liabilities 
totaling  198,839,324,  divided  as.  follows;  Permanent  Government  (Chi- 
iie8.e)  inves.tments,  $3,589,350;  mortgage  bonds,  $84,526,884;  other 
'Secured  indebtedness,  $10,723,090, 

The  obligations  other  than  the  permanent  Government  investmenta 
are  divided  as  follows:  Deutach-ilsiatische  Bank,  Shanghai  branch, 
$61,391,364;  Chinese  Central  Railways  (Ltd.),  London  (the  banking 
connection  of  which  is  the  Hongkong  &  Shanghai  Banking  Corpora- 
tion), $33,858,610.  It  is  assumed  in  connection  with  the  table  on 
page  42  that  all  the  securities  are  of  ownership  other  than  Chinese, 
tut  the  writer  was  unable  to  .ascertain  the  facts  regarding  the  details 
of  this  ownersWp. 

.riESENT  CONTROL. 

After  the  completion  of  construction  the  management  was  not  con- 
solidated as  was.'  app.arently  the  intention  of  the  loan  agreement,  l)ut., 
with  one  Chinese  man.aging  director  for  the  entire  line,  the  foreign 
staffs  were  ret.ained  for  the  two  sections.  Thk  arrangement  continued 
until  China  severed  relations  with  Germany  in  1917,  when  the  German 
staff  on  the  northern  section  was  dismissed  and  replaced  by  Chinese, 
except  in  one  instance,  in  which  a  British  boiler  inspector  was  ap- 
pointed at  the  Tsinanf u  workshops ,  The  British  s  t aff  is  s till  employed 
in  the  m.aiiitenaiicc  and  operation  of  the  southern  section. 

'CI^&SS  OF  TMAPriC. 

For  the  year  ended  Deoeni.ber  31,  1916,  earnings  from  passenger 
service  amounted  to  $4,457,837  Mex,  and  the  freight  business  to 


CHIHA. 


91 


$5,323,963  Mex.  Rouglily,  therefore,  the  paaeenger  earnings  were 
45  per  cent  and  the  freight  55  per  cent.  The  business  of  this  railway 
IS  probably  quite  typical  of  that  to  be  expected  on  a  new  line,  and  the 
probabdity  is  that  tliere  will  be  a  constantly  increasing  traffic  in  min- 
eral products,  as  has  happened  on  the  Peking-Mukden  and  also,  to  a 
ndticeable  extent,  on  the  Peking-Hankow  hne. 

PHESENT  PROPrrs  AND  OUTDOOK  FOR  POTtlHE. 

The  result  of  operations  in  1913  was  a  deficit  of  approximately 
$1,965,000  Mex.  It  was  impossible  to  secure  reliable  figures  on  the 
1914  earnings.  The  results  of  operations  for  the  jestrs  1915  and 
1916  are  shown  by  the  table  on  page  57.  A  total  accumulated 
dehcit  of  $5,793,877  was  left  at  the  end  of  the  year  1916. 

The  very  disastrous  floods  along  the  north  end  of  this  hne  during 
the  last  four  months  of  1917  may  have  reduced  the  proflts  for  that 
year,  but  this  condition  will  be  only  temporary  and  there  are  o-ood 
^rounds  for  thbiking  that  this  line  will  be  reasonably  profitable  in  the 
future.    The  following  is  an  excerpt  from  the  annual  report  for  1916: 

i«In  f^r'nL*^^*^''/  eoEsiderable  increase  in  transportation  of  agricaltural  producta 
la  to  be  noted,  and  still  better  results  could  have  been  realized  but  for  the  shortage 

^!J^°'''^^'^^  ^i  ^"""^-^  ^^?"''  «^"^^  t«  "^^^^^  a  great  deal  of  cai^o  could  notbe  . 
yarned  and  was  often  diverted  to  the  old  routes  by  canal  or  road.    tS  overcome  thia 
difficulty  in  8ome  way  amngementa  were  made  mth  the  Lunghai  (Pienlo)  Railway  ' 

nnWprt  S-nr^A^"'"^  '^^"""f ,^«;  ^^'^  ^^f.^^  of  ca«,  and  50  (30-ton)  covered  cars  were  I 
ordered  from  America;  but  t  le  latter  did  not  arrive  even  up  to  the  end  of  the  year 
owing  to  the  shortage  ot  ireight  steamers  from  that  country  to  China. 

t/li!^  statement  is  typical  of  the  conditions  existing  on  practically 
m  the  Lhmese  Government  Railwaj-s,  and,  in  connection  with  the 
statement  on  page  77,  is  in  support  of  the  suggestions  and  recom- 
mendations made  later  regarding  an  arrangement  for  these  railways 
to  purchase  equipment  by  means  of  equipment  trust  certificates.  i 

EXTENSIONS.  ; 

At  present  no  extensions  are  contemplated.  In  fact,  it  came  to 
the  notice  of  the  writer,  in  the  case  of  the  development  of  a  coal  mine 
requmng  a  branch  of  some  20  miles,  that  the  coal  company  was 
evidently  told  that  it  would  have  to  build  the  branch  an  J,  in  addi- 
tion,  furmsli  100  coal  cars  as  its  share  of  the  necessary  equipment  for 
the  reason  that  the  railway  at  present  was  not  in  aToSHo  bu  d 
this  branch  or  buy  the  additional  eciuipment.  It  would  appear 
however,  from  a  study  of  the  map  ot  tfiis  part  of  China  anci  the 
Il?r  ''^r'il''^^  '}^  territoiyT  that  the  Ltural  and  econom^^^^^^ 
Z^^nT^v^  ""Tl^  ^"-^^  construct  and  later  maintam  and  operate 
these  additional  lines  in  connection  with  the  Tientsin-Pukow  fine 

Jo  S  TlonW  't'  ^^'1  '^  ^^*^^'"^?  ^^^^^y  ^«  '^^'^  over 
radwa  s  operated  m  connection  with  this  system  of 

BOADWAY  AND  TBACK  MATERIALa 

are^  m^^'i'InT  ""^  n '^  l^^  'f^^^^  substantially  budt  and  all  structures 
chti^^ T^^-  ^''  -^^^  5^^™^^,  ^^*^*^«^  ^^  materials  were  pur- 
chased in  Germany,  including  a  large  amount  of  rail  for  the  fi^^t 
section  constructed,  although  it  was  clearly  the  intention  that  tS  i 


•- 


lAILWAY  MATEBIALS,  "EQUIPMENT,  AND  SUPPUBS, 

should  be  funiislied  from  the  Han-Yeh-PiDg  plant,  as  was  the  case 
on  the  &uthem  or  British  section ;  what  wm  ordered  later  from  these 
works  was  a  special  German  section  of  67.'l  pounds  to  the  yard.  On 
the  southern  section  anything  that  coidd  be  purchased  in  China  was 
bought  there  and  al,  other  materials  and  equipment  were  opened 
to  competition,  wi,th  the  result  that  the  cont.racts  were  placet!  with 
British," Continental,  and  American  concerns  and  China  secui-ed  these 
railwa}^'  requirements  at  better  prices  than  in  any  previous  instance. 
A  considerable  part  of  this  line  s  maintenance  requirements,  such  as 
switch  stands,  irogs^,  and  switches,  are  being  manufactured  in  the 
workshoi»  at"  Tsinanfu  and  Pukow,  although  in  connection  with 
the  reqirements  for  the  German  section  there  is  such  a  large  stock 
on  hand  that  m,any  of  the  materials  will  last  for  a  great  number  of 
ycai-s — in  fact,  in  some  instances  they  may  never  be  used. 

lOLLIMQ  STOCK. 


CHINA. 


93 


On  the  German  section  all  the  rolling  stock  was  purchased  in 
Gei-many,  and  it  is  claimed,  with  rerj^'  good  reasons  to  support  the 
belief,  that  much  of  this  equipment  was  actually  on  the  wav  to  China 
before  the  invitations  for  tenders  were  published  in  Tientsin  ;to 
comply  with  the  terms^  of  the  loan, agreement.  'On  the  British  section 
tenders  were  iii'vited  for  aU,  the  equipment,  with  the  result  that 
considerable  portions  of  this  came  from  countries  other  than  the 
IMited  Kingdom.  Hall  of  the  first  200'  freight  cars  came  from, 
Belgium,  ,2  of  the  fi,rst  10  locomotives  from  ,America,  all  the  rail  and 
fastenings  from,  the  Han-Yoh-Ping  iron  works,  and  most  of  the  cement 
from,  the"  Hankow  plant  of  the  Chee  Hsi,n,g  Co.,  which  also  has  a  plant 
at  Tangshan.  This  line  is  in  need  of  additional  rolling  stock,  as  is 
indicated  by  the  quotation  on  page  91  from  the  1916  annual  report. 
During  the  early  part  of  19174ne  Pressed  Steel  Car  Co.  furnished  the 
li,ne  50  very  eieelleot  covered  cars  somewhat  similar  to 'the  one 
shown  in,  figure  26. 

'fPOlEIIIIIiOPS. 

There  are  very  well  aiTan,ged  and  equipped  workshops  on  both 
Bections,  ,involving  unwarranted  expense  for  the  construction, 
m,ai,ntenance,  operation,  and  overhe,ad  expense  of  two  complete 
general  workshops  when,  one  such  shop  as  that  at  Tsinanfu  would 
Save  been  entirely  adequate.  The  shops  on  the  German  section  are 
located  at  Tsinanfu  and  are  equippecf  entirely  with  German  shop 
m,ach,inery.  ■Th,is  shop,  with  its  present  f acihties  and  by  utihzing  part 
of  those  now  instaled  at  Puchen,  would  be  capable  of  taking  care 
of  the  general  repairs  of  all  rolling  stock  for  the  enth-e  Tientsin- 
Pukowfine  and  also  the  Shantung  11  ailwaj,  running  from  Tsinanfu 
to  Tsingtau.  The  shops  o„n  the  British  section  are  located  at  Puchen, 
about  10'  miles  from  tne  Pukow  terminal.  These  shops  are  not  so 
extensive  or  bo  co,mBletel,y  equipped  as  those  at  Tsinanfu.  The 
sliop  ■machinery  has  been  'purchased  on  the  open  market  hke  the 
other  requ,i,rem,ents,  but  m,ost  of  it  is  of  British  manufacture. 

ORGIMBITION'  AND  PESSONHKL. 

Under  date  of  October  20,  1916,  regulations  for  an  organization 
similar  to  that  of  the  Pekin-Mukden  were  promulgated,  but,  as 


already  explained,  while  the  administration  is  under  one  managin*' 
director  for  the  entire  line,  with  a  hmited  number  of  general  officers*^ 
there  are  in  addition  the  district  staffs,  retained  on  each  of  the  con- 
struction sections,  which  are  now  termed  the  Tsinhan  District  for 
the  north  or  German  section  and  the  Hanpu  District  for  the  south 
or  British  section.  A  list  of  the  principal  officers  for  the  general 
office  and  each  district  is  given  in  the  directory  beginning  on  page  262. 

PURCHASE  OP  STORES. 

The  purchase  and  supervision  of  stores  come  under  a  subdepart- 
ment  of  the  general  department,  and  the  official  in  charge  is  the 
secretary  and  general  storekeeper,  whose  office  is  at  Tientsin,  In 
addition,  there  are  district  storekeepers  at  Tsinanfu  and  Pukow, 
The  district  storekeeper  at  Tsinanfu,  since  the  Germans  were  dis- 
missed, is  a  Chinese  and  comes  under  the  usual  regulations  for  the 
Chinese  Government  Kailways,  but  the  district  storekeeper  at 
Pukow  is  under  the  general  jurisdiction  of  the  engineer-in-chief  of 
the  Hanpii  District.  It  is  now  the  general  practice  of  this  line  to 
mvite  tenders  by  advertisements,  such  as  the  one  shown  on  page  68. 
Ihis  Ime  recently  lost  considerable  stretches  of  its  roadway  at  the 
northern  end  of  the  Tsinhan  District,  and  the  permanent  repairs  will 
probably  require  some  additional  bridge  materials  to  replace  the 
lost  bridges  or  to  provide  additional  openings. 

PEKING-HANKOW  (KIN-HAN)  RAILWAY. 

LOCATION  AND  EXTENT, 

The  northern  terminus  of  this  line  is  south  of  the  Chengyan^men 
gate  m  Peking,  as  mentioned  in  connection  with  the  Pekinl-Mukden 
Kailway  The  total  length  of  the  mam  line  is  about  750  miles  and 
tiie  southern  terminus  is  Hankow  on  the  Yangtze  River,  which  is 
in  about  the  same  latitude,  as  New  Orleans.  Hankow  is  about  the 
same  distance  south  and  west  of  Peking  as  New  Orleans  is  of  Indiana- 
polls.  1  his  at  present  is  the  longest  journey  that  can  be  made  on 
the  Chmese  Government  Radways  without  change  of  cars.  There 
are  five  branches,  mostly  to  coal  mines,  with  a  total  of  about  60 
miles  of  hne,  the  longest  of  these  branches  bemg  26  miles. 

mSTORICAL  SURVEY. 

tofnZfp  fttl?'!??^  T^  other  considerations,  it  is  rather  difficult 

,^  tht  klm^  T.  -^  ^*'"'"^'  "i  *5^  ^^'^"■•y  °^  **"«  l"ie  in  a  report 
of  this  kind      Tills  was  one  of  the  earliest  railway  projects  con- 

Sd  Se  XSon'of  foreS'ci"  Uaf '  The'^fcf ^^"^"""^^ 
fc  aZ'rHrZ''^  *^'  Sntjine  was  the^^^izatiin  ftsOG 
^  t^LJ^  n^^'  "^'"T^  "^  Hukiiang,  of  the  Chinese  Eailway 
of  Sn  nn^nn^^l^^T1*•  f^r ^^t'^'i  ^'t^^  "^^  authorized  capita 
raise  onlvTnnnn'nn'*^''^''^'.^"'^^!?'"'  ^^^  Chinese  were  able  to 

S|tal  wL'Sr  *''^'  "''*''  "'"'^'^  ''''  "^'"'^'^  °^  ^"^^'^ 

by  ^nft'^rl^lltl*!'"?'^'''',!'^^^  ^  American  syndicate  represented 
Cant  Rich  «nH  ir^  '  l""'  ^^""^  ^'^^^y^ ''?«'  estimates  were  made  by 
^  apt.  Kich,  and  one  of  whose  assistan  ts  was  Mr.  K.  S.  Low,  already  men- 


BAILWAY  MATERIA,LS,  EQUIPMENT,  AMD  SITPPLIES. 


CHINA. 


95 


1  m  maimging  director  of  tlie  southera  section  of  the  Tientsin- 
w  line.,     tor  .some  time  in  1897  it  looked  as  though  the  con- 


tioneci. 
Piikow 

struction  of  this  line  would  go  to  this  American  syndicate*  aitliou<^h 
ftt  the  same  time-  there  wero  in  progress  negotiations  hy  British 
mterestfi.  During  this  interval  Mr.  Sheng  Kung-Pao  was  made 
doctor  general  of  the  company ;  he  took  an  actire  part  in  carrying  the 
project  to  a  conclusion  and  continued  his  activities  in  th,e 'railway 
situation  up  to  his  dismissal  in  1911.  During  the  time  tliese  surveys 
were  being  m,a.ile  and  negotiations  were  in  progress,  a  Belgian  syncfi- 
cate  mmed  the  Soci6t6  Fiiinnci^re  et  Industrielle  Beige  en  f^liine 
entered  the  field  without  attracting  serious  attention  and  concluded 
the  preliminary  agreements  of  1897,  as  shown  by  the  documents  in 
api>endix  3 .  This  sjTidicate,  as  developments  have  since  cleari v  shown, 
was  a  Franco-Belgian  combination  operating  with  Russian  assistance 
and  mtercst  As  quickly  developed,  the financiere  of  these  in- 
terested nations  could  not  obtain'  the  necessary  funds  under  tlie 
terms  of  the  prelimmary  coiitrjict,  with  tlie  result  that  resort  was 
had  to  a  sewes  of  concessions  secured  through  extended  negotiatioiis 
(supported^by  diplomatic  pressure  from  Russia,  France,  and  Belgium) 
and  resultm|r  in  the  final  agreement  under  which  the  line  \\-i\s 
constructed  by  La  Soci(5t6  d'Etude  des  Chcmins  de  Fer  en  Chine. 
The  concluding  of  these  negotiations  was  the  particular  event  that 
precipitated  one  of  the  acute  periods  of  the  '^Battle  for  Concessions/' 

The  supplementary  loan  of  1905,  as  shown,  bv  appendix  3,  provided 
the  necessary  fmids  for  tlie  fin.al  completion  o!  the  railway. 

In  1907  the  net  profits  amounted  to  approximately '  $2,000,000 
Mexican,  ;and  the  Chkese  concluded  that  the  line  was  gomg  to  be  very 
profitable,  as  it  has  since  proved  to  he;  but  as  the  Belgian  syndicate 
was  entitled  to  20  per  cent  of  the  annual  profits,  it  was  decided 
to  pay  the  5  per  cent  premium  and  redeem  the  original  loan.  This 
was  successf lily  accomplished  in  1908  by  the  flotation  of  the  present 
Anglo-French  loan  for  £5,000,000.  The  line  was  taken  over  by 
the  Chinese  Government  on  January  1;  1909,  and  has  since  been 
operated  by  the  Mmistry  of  Communications  un.der  the  terms  of 
this  lo«i  agreement. 

:BO«KC«  OF  CAFrriL- 

Tbe  original  loan,  finaly  ■  aggregating  about  £4,500,000,  is  said 
to  have  been  distributed  about  threc-fiftlis  to  Frencli  subscribers 
and  two-fifths  to  Belgian.  The  wiiter  was  a^ble  to  obtaui  no  reliable 
inform-ation  as  to  the  division  between  British  and  French  subscribers. 
of  the  present  iyiglo-French  loan  of  £5,000,000.  Special  attention 
18  called  to  the  table  on  page  54  as  showing  that  tie  Chinese  Gov- 
ernment, tlttoi^h  the  owneiship  of  the  perm,anent  investments  and 
the  additions  from  surplus,  now  actually  owns  about  50  per  cent  of 
the  capital  cost  of  tliis  system. 

WMKNT'  CONTKOL. 

'Notwithstanding  the  fact  that  the  present  loan  has  eliminated 

the  ^concession  features,  a  considerable  French  technical  staff  is 
retiiined  in  the  maintenance  and  operation  of  the  property  and  all 
statistical  and  technical  infofmation  is  prmted  in  French  or  Chkese. 


This  French  staff  appears  to  have  a  very  considerable  authority 
m  the  administration  of  the  property. 


CLASS  Of  TRAFFIC. 


Tlie  traffic  on  this  Ime  may  be  roughly  divided  into  30  per  cent 
passenger  and  70  per  cent  freight.  Mineral  products,  of  which 
a  large  part  is*  coal,  represent  more  than  40  per  cent  of  this  traffie 
agricultural  products  more  than  15  per  cent  and  manufactured  prod- 
ucts less  than  15  per  cent.  The  Cheng-Tai  and  Taokow-Chinghua 
Imes  both  turn  over  to  this  line  a  considerable  amount  of  coal,  and 
this  will  probably  increase  from  year  to  j-ear.  This  line  and  the 
Canton-Hankow  Railway  (when  the  latter  is  completed)  will  con- 
stitute  tlie  principal  north-and-south  trunk  line  from  the  populous 
center  of  Canton  through  a  densely  settled  country  to  the  coming 
mdustnal  center  of  Hankow  and  then  to  the  city  of  Pekincr 


PKESENT  PBOFFTS. 


In  1912  this  line  earned  $5,246,300  net;  in  1913  it  earned  $7,548,600 

tR  r;Ar4o     '  rl^^  all  fixed  charges  and  taxes,  net  earnings  wero 

W  ?oi 7^'i:  ''''^  ^""'^  ^^^^  ^^f^  ^^^^  ^^  $8,751,912.     The  net  earnings 
for  1917,  however,  were  adversely  affected  by  the  very  disastrous 

i^'^n.^Kr'^Vf  1?''^*'*/''  Pr^  ""^  ^^  territory,  which  destroved  con- 
siderable  stretches  of  railway  and  a  number  of  expensive  ^bridges. 

A  «  f 'f K  T'^'"'''  ^^  ^''*  ^""^y  *  temporary  effect,  and  tliere  is  no  doubt 
Uiat  this  line  will  continue  to  be  profitable  and  will  in  time  Mquidato 
Its  entire  indebtedness  out  of  earnings. 
^  P^^sent  no  extensions  are  contemplated  other  than  those  in 

ROADWAY  AND  TRACK  MATERIALS. 

PracticaUy  all  of  the  rail  and  fastenmgs  come  from  the  Han-Yeh- 
ring  worte.    The  rail  weighs  76  pounds  per  yard  and  is  a  B^WiRn 

lurnished  from  Belgium  or  France,  except  in  a  very  limited  number 

factTr^^^'Vl";,'^'^  '""'^  ^^f  P^fhased  froi^  ChinLe  JJ^^nu- 
iw.„^  1  Tu  ^  *  T®"^  considerable  number  of  bridges  on  this 
te'ln  rc,S''i''T?,'?'  one  over  the  Yellow  River,  which  is  9,87! 
itet  in  length,  about  1 1  feet  above  high  water,  partlv  through  trii«P« 

;iaKL^pu£'"S'TT4^  ^"PP^'^^^'l  oL^l'j^^edl"^:!" 
m  B^fnJ^^n^  f^^'  ,9  ^^'*»  ■°^,^^^  superstructure  was  fabricated 
o  SiStZ,.^  t^»  °*!^,f  ilf"  "1  France,  and  the  floor  system  is  aU 
ale^v  SonS  '  Th  I  *?*  ^f^^^g^Wfin  with  metd  plates,  ^s 
line  WXen^nV.  Trif  ^^^^^""^  ^^  all  the  other  bridgis  on  this 
cnrrv  nTlX  ^  cnticued  as  not  being  of  sufficient  strength  to 
♦Ki7ff    P  "^  t^e  motive  power  that  is  being  used.     It  was  itated 

thh  s'tZmen?  ^Pr'^^"}^^  ?f  ^^^  structm-e^  would  seem  to  warrin[ 
.„„!i!  .  *;  ^®  advertisement  reproduced  on  paee  67  was  for 
tenders  to  replace  some  of  the  bridged  lost  durin-  tlTe  dest^tivl 

KLtt^ff^thnifr^'^  '^•^''^  "V'J'^  ""^  "^  lan.  It?repor  ed 
uiat  mo:.t  of  this  business  was  awarded  to  an  American  concera. 


m 


EAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


ROLLING  STOCK. 


The  rolling  stock  is  all  of  Belgian  or  French  manufacture.  It  is 
illustrated  in  figures  22  and  23.  This  line,  as  is  the  case  with  the  other 
Chinese  Government  Kailways,  is  short  of  freight-car  equipment  for 
handling  all  the  business  offered. 


WORKSHOPS. 


There  are  three  workshops  on  this  hne,  the  largest  and  niost 
important  being  at  Changhsintien,  about  32  miles  from  Peking. 
The  Chingchow  shops  are  district  repair  shops  about  430  miles  from 
Pekmg,  and  the  Hankow  district  repair  shops  are  only  a  few  miles 
from  that  end  of  the  line.  None  of  these  shops  are  laid  out  on  the 
lines  of  the  Tongshan  or  Tsinanfu  shops,  and  in  the  course  of  time 
they  will  no  doubt  need  considerable  additional  shop  machinery. 
The  present  shop  equipment  is  quite  varied,  and  a  considerable  num- 
ber of  the  machme  tools  are  of  American  manuf actm-e. 

ORGANIZATION  AND  PERSONNEL. 

The  organization  for  this  line  is  very  similar  to  that  shown  for  the 
Peking-Mukden  and  was  promulgated  the  same  date,  October  20, 
1916.  In  the  directory  given  on  page  263  the  writer  was  not  entirely 
able  to  reconcile  the  titles  with  the  requkements  of  the  promulgated 
organization, 

PURCHASB  OF  STORES. 

The  administration  and  purchase  of  stores  come  under  a  sub- 
department  of  the  general  department,  but  the  present  managing 
director,  Mr.  C.  C.  Wang  (Chinese) ,  gives  all  important  purchases  iiis 
personal  attention.  In  purchasing  all  supphes  by  pubhc  tender,  this 
railway  has  probably  taken  steps  in  advance  of  any  of  the  other 
Chinese  Government  Kailways.  The  Peking-Hankow  is  the  only 
line  that  has  so  far  made  any  move  toward  the  purchase  of  miscel- 
laneous merchandise  requirements  by  the  arrangement  of  annual 
contracts. 

CHENG-TAI  (SHANSI)  RAILWAY. 

LOCATION  AND  EXTENT. 

This  is  the  only  meter-gauge  line  of  the  Chinese  Government  Rail- 
ways and  connects  with  the  Peking-Hankow  at  Shihchiachuang, 
about  172  miles  south  of  Peking.  The  Une  extends  westward  151 
miles  through  a  very  rough  country  to  Taiyuanfu,  the  capital  of  the 
Province  of  Shansi,  which  is  about  2,600  feet  above  sea  level.  The 
highest  point  on  the  line  is  about  3,500  feet  in  altitude.  There  are  21 
tunnels  on  the  line,  but  the  longest  is  only  about  960  feet  in  length. 
There  is  also  a  large  number  of  bridges  and  viaducts,  some  of  them 
of  very  considerable  size. 

HISTORICAL  SURVEY. 

The  first  reconnoissance  and  estimates  for  this  loan  were  made  by  a 
French  engineer  for  the  Riisso-Chinese  Bank  and  the  Comptoir 
d'Escompte  in  1897.  In  May,  1898,  the  Russo-Chinese  Bank  made 
a  prelimmary  agreement  with  the  Chinese  Government  to  furnish 
25,000,000  francs  for  the  construction  of  this  line,  but  after  resurvey 


Special  Agents  Series  No.  180. 


FIG.  22.— LOCOIVIOTIVE  ON  THE  PEKING-HANKOW   RAILWAY. 


I 


FIG.  23.— FREIGHT-CAR  TRUCK  ON   THE  PEKING-HANKOW   RAILWAY. 


i 


INTENTIONAL  SECOND  EXPOSURE 


96 


KAILWAY   MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


ROLLING  STOCK, 


The  rolling  stock  is  all  of  Belgian  or  French  manufacture.  It  is 
illustrated  in  figures  22  and  23.  Tliis  line,  as  is  the  case  with  the  other 
Chinese  Government  Railways,  is  short  of  freight-car  equipment  for 

handling  all  the  business  oU'ered. 

WORKSHOPS. 

There  are  three  workshops  on  this  line,  the  largest  and  most 
important  being  at  Changhsintien,  about  32  miles  from  Peking. 
Tlie  Cliingchow  shops  are  district  repair  shops  about  430  miles  from 
Peking,  and  the  Hankow  district  repair  shops  are  only  a  few  miles 
from  tliat  end  of  tlie  line.  None  of  these  sliops  are  laid  out  on  the 
lines  of  the  Tongshan  or  Tsinanfu  shops,  and  in  the  couree  of  time 
they  will  no  doubt  need  considerable  additional  shop  machinery. 
The  present  shop  equipment  is  quite  varied,  and  a  considerable  num- 
ber of  tlie  machine  tools  are  of  American  manufacture. 

OKGANIZATION  AND  PERSONNEL. 

The  organization  for  this  line  is  very  similar  to  that  shown  for  the 
Peking-Mukden  and  was  promulgatecl  the  same  date,  October  20, 
1016.  In  the  directory  given  on  page  263  the  writer  was  not  entirely 
able  to  reconcile  the  titles  with  the  requirements  of  the  promulgated 

organization. 

PUICHASE  OF  STORES. 

The  administration  and  purchase  of  stores  come  under  a  sub- 
department  of  the  general  department,  but  the  present  managing 
director,  Mr.  C.  C.  Wang  (Chinese),  gives  all  important  purchases  his 
personal  attention.  In  purchasing  all  supplies  by  public  tender,  this 
railway  has  probably  taken  steps  in  advance  of  any  of  the  other 
Cliiiicse  Government  Railways.  The  Peking-Hankow  is  the  only 
lino  that  has  so  far  made  any  move  toward  the  purchase  of  miscel- 
laneous merciiandise  requirements  by  the  arrangement  of  annual 
contracts. 

CHENG-TAI  (SHANSI)  RAILWAY, 
LOCATION  AND  EXTENT. 

Tliis  is  the  only  meter-gauge  line  of  the  Chinese  Government  R  ail- 
ways  and  connects  with  the  Peking-Hankow  at  wShihchiachuang, 
about  172  miles  south  of  Peking.  The  line  extends  westward  151 
miles  through  a  very  rougli  country  to  Taiyuanfu,  tlie  capital  of  the 

Province  of  Shansi,  wliich  is  about  2,600  feet  above  sea  level.     The 
highest  point  on  the  line  is  about  3,500  feet  in  altitude.     There  are  21 

tunnels  on  the  line,  but  the  longest  is  only  about  960  feet  in  length. 
There  is  also  a  large  number  of  bridges  and  viaducts,  some  of  tliem 

of  very  coiisiderabte  size. 

HISTORICAL  SURVEY. 

The  first  reeonnoissance  and  estimates  for  this  loan  were  made  by  a 
French  engineer  for  the  Russo-Chinese  Bank  and  tlie  Comptoir 
d'Escompte  in  1897.  In  May,  1898,  the  Russo-Chinese  Bank  made 
a  preliminary  agreement  with  tlio  Chinese  Government  to  furnish 
25,000,000  francs  for  the  construction  of  this  line,  but  after  resurvey 


Special  Agents  Series  No.  180. 


n 


II  • 


FIG.  22.— LOCOMOTIVE  ON  THE   PEKING-HANKOW   RAILWAY. 


I 


FIG.  23.— FREIGHT-CAR  TRUCK  ON   THE   PEKING-HANKOW   RAILWAY. 


Special  Agents  Series  No.  180. 


FfG.  24.— DJNING  CAR  ON  THE  PEKING-MUKDEN   RAILWAY. 


FIG.  25.— PLATFORIVI   BAGGAGE  TRUCK  ON  THE  PEKING-HANKOW   RAILWAY. 


CHINA. 


97 


and  better  estimates  this  amount  was  increased  to  40,000,000  francs. 
The  final  agreement  was  formally  ratified  September  7,  1902,  by  an 
Imperial  decree.  The  loan  bears  5  per  cent  interest  and  was  issued 
at  90.  Amortization  began  September  1,  1911,  and  runs  for  20  years, 
but  the  balance  due  can  be  paid  any  time  after  the  above  date.  The 
loan  is  guaranteed  by  the  Chinese  Government.  The  Belgian  com- 
pany previously  mentioned  as  building  the  Peking-Hankow  line  was 
also  given  the  contract  for  building  this  line.  Construction  was 
started  in  1903,  the  first  rail  was  laid  in  1905,  and  the  line  was  opened 
for  traffic  in  1907. 

While  this  loan  was  handled  by  the  Russo-Chinese  Bank  it  is 
probable  that  most  of  the  funds  came  from  French  or  Belgian  sub- 
scribers. Some  years  ago  the  Russo-Chinese  Bank  disposed  of  all 
its  interest,  and  the  loan  is  now  entirely  under  French  control. 


CLASS  OF  TRAFFIC. 


Roughly,  the  earnings  of  this  line,  amounting  to  something  over 
$2,000,000  a  year,  are  derived  25  per  cent  from  passenger  traffic  and 
75  per  cent  from  freight,  and  more  than  75  per  cent  of  the  freight 
earnmgs  are  from  the  coal  business.  The  coal  deposits  along  this 
Ime  are  among  the  best  in  China,  and  much  of  the  present  product 
IS  a  good  quahty  of  semianthracite,  which  is  handled  in  blocks  about 
10  by  12  by  16  mches  in  size.  The  present  coal  operations  on  this  line 
are  m  territory  of  the  Peking  Syndicate  concession,  mentioned  later 
m  connection  with  the  Taokow-Chinghua  Railway  (see  p.  98). 

PRESENT  PROFTTS  AND  OUTLOOK  FOR  FUTURE. 

The  operating  expenses  are  about  $1,000,000  and  interest  charges 
are  $900,000,  with  the  result  that  there  is  only  a  small  margin  of 
profit.  While  the  road's  business  may  increase  in  the  future,  the 
Ime  will  probably  never  be  one  producing  large  returns,  particularly 
on  account  of  the  handicap  of  the  meter  gauge,  requiring  trans- 
slupment  of  all  freight  and  passengers  at  the  junction  with  the 
Peking-Hankow  railway. 

So  far  as  could  be  learned  no  extensions  of  this  fine  are  now  con- 
templated Wlien  It  was  built  it  was  thought  that  it  might  be  the 
nucleus  of  a  very  extensive  ovstem,  but  until  the  gauge  is  made  4 
feet  8i  mches  it  is  not  likely  that  any  long  lines  wHl  be  built  extend- 
ing this  railway. 

ROADWAY  AND  TRACK  MATERIALS— ROLLING  STOCK. 

fh  J^^^r^'^L^  Belgian  section  weighing  approximately  60  pounds  to 
wn.lZ  n??^'  with  the  fastenings,  came  from  the  Han-Yeh-Ping 
work..  Otherwise  the  remarks  regarding  the  roadway  materials  on 
the  Peking-Hankow  Railway  apply  in  aU  details  to  this  Hne. 

As  on  the  Pekmg-Hankow,  all  the  rolhng  stock  is  of  French  and 
Belgian  design  and  manufacture.     This  line  has  57  locomotives    51 

Et?0^T..n/^  f^^'^'  •'''  ^'''^^'  .^^^^'  ^^^  1^3  service  ca^ 
7^dn^  J?i^    ^^^/L*'  ""^  ^^'^  equipment  consists  of  cars  suitable  for  car- 
wS  k  biXl        ^^^^?^^  capacity  of  all  cars  is  over  46,000  pounds, 

Star"  S'4NoT87iSTaS^^^  '^^  ^^"'^"^^^  ^"  ^^^  ^^^  ^  ^^^^ 
106229 ''--19 7 


i 


INTENTIONAL  SECOND  EXPOSURE 


Special  Agents  Series  No.  180. 


FIG.  24.— DINING  CAR  ON  THE  PEKING-MUKDEN   RAILWAY. 


FIG.  25.— PLATFORM   BAGGAGE  TRUCK  ON  THE  PEKING-HANKOW   RAILWAY. 


CHINA. 


97 


and  better  estimates  this  amount  was  increased  to  40,000,000  francs. 
The  final  agreement  was  formally  ratified  September  7,  1902,  by  an 
Imperial  decree.  The  loan  bears  5  per  cent  interest  and  was  issued 
at  90.  Amortization  began  September  1,  1911,  and  rmis  for  20  3-ears, 
but  the  balance  due  can  be  paid  any  time  after  the  above  date.*  The 
loan  is  guaranteed  by  the  Chinese  Government.  The  Belgian  com- 
pany previously  mentioned  as  building  the  Peking-Hankow  line  was 
also  given  the  contract  for  building  this  line.  Construction  was 
started  in  1903,  the  first  rail  was  laid  in  1905,  and  the  line  was  opened 
for  traffic  in  1907. 

Wliile  this  loan  was  handled  by  the  Russo-Chinese  Bank  it  is 
probable  that  most  of  the  funds  came  from  French  or  Belgian  sub- 
scribers. Some  years  a^o  the  Russo-Chinese  Bank  disposed  of  all 
its  interest,  and  the  loan  is  now  entirely  under  French  control. 

CLASS  OF  TRAFFIC. 

Roughly,  the  earnings  of  this  line,  amounting  to  something  over 
$2,000,000  a  year,  are  derived  25  per  cent  from  passenger  traffic  and 
75  per  cent  from  freight,  and  more  than  75  per  cent  of  the  freio-hfc 
earnnigs  are  from  the  coal  business.  The  coal  deposits  along  this 
Ime  are  among  the  best  in  China,  and  much  of  the  present  product 
is  a  good  quahty  of  semianthracite,  which  is  handled  in  blocks  about 
10  by  12  by  16  mches  m  size.  The  present  coal  operations  on  this  line 
are  in  territory  of  the  Peking  Syndicate  concession,  mentioned  later 
m  connection  with  the  Taokow-Chinghua  Railway  (see  p.  98). 

PRESENT  PROFITS  AND  OUTLOOK  FOR  FUTURE. 

'^IL^i^f  ^*^^"^.  ^^Pf^nses  are  about  $1,000,000  and  interest  charges 
are  $900  000  with  the  result  that  there  is  only  a  small  margin  of 
profit.  While  the  road's  business  may  increase  in  the  future,  the 
Jme  will  probably  never  be  one  producing  large  returns,  particularly 
on  account  of  the  handicap  of  the  meter  gauge,  requiring  trans- 
shipment of  all  freight  and  passengers  at  the  junction  with  the 
Pcking-Hankow  railway. 

So  far  as  could  be  learned  no  extensions  of  this  line  are  now  con- 
templated. TOien  It  was  built  it  was  thought  that  it  might  be  the 
nucleus  of  a  very  extensive  cystem,  but  until  the  gauche  is  made  4 

S^is^rSl^a^."  ^''  ^'^^^  '^^'^  "^^  ^'''^  ^^  wUl^e  l^ui^t;  Sd^ 

ROADWAY  AND  TRACK  MATERIALS-ROLLING  STOCK. 

thJ'varH'VnJ*  wtr?l"'>'?  '^''^^'"-  approximately  60  pounds  to 
"  ,,.Z"    nX  '  ^'*'i.  ^'"'  fastenings,  came  from  tlic  Han-Yeh-Ping 

feki,?jR^V  ^  ^'i^"  •'i'"""'''  '•'■garding  the  roadway  materials  oS 
tl.o  Fekin^-Hankow  RaUway  apply  m  aU  details  to  this  line. 

As  on  the  Peking-Hankow,  all  the  rolling  stock  is  of  French  and 
i.  fZn'"'"""  ^"d  ™'1""facture.    This  linS  has  57  locomotives,  51 

Abou^l'o  ner  cent  n^  fv''°''  '''  ^T^^'  ■'•'''' ^'^  ''''^  ^'^'^^'^  «^^ 
rv  nf^^ai'      f.?*  °^  ^^'^  equipment  consists  of  cars  suitable  for  car- 

wl  1  ;=  » '•  T-  "^^  a^verage  capacity  of  all  cars  is  over  46,000  pounds 

Stt;:  KfoTs^^^^^Ug^'  *'^  *^'^^^""^*  '^  ^^^  ^-  -  c^- 

100229^—19 7 


99 


MttWAY  MATERIALS,  .BQUIPMEFT,  AND  SUPPLIES. 

WOlKBHOPa. 


«,n  J^t^n  !i/re^  *^1'  "^J^^^  **  Shihchiacfauang,  near  tho 
TOnnection  with  the  PdHtig-Hanfcow  R*ilway.  These  are  am  a)  I 
shops;  they  are  only  for  the  makiiig  of  aU  tiakua  of  repaire  to  tho 
TtLpSr^        *^  ^^  *'"*  •*"  m*aufactoring  of  eq^uJL^t  k 

OWIiAIIKilllllf  AND  PlllM»Mli||^. 

TMs  lina,  wMle  oi^anized  along  the  general  airaegeiiietit  called' for 

hZ  tt^^^I*^^^^  1^' IS am^pariiig director  (Oiinese), 

!i^iw  f^\?**^  '^'  ^\  F^t'  ^"sLiiig  true  to  an  men 
greater  extent  tlian  on  the  rddng-Haiikow  RailwaF  Th«  numA 
shown  for  this  liii^  in  the  UnivS  DireXy^'S^aTofS 
and  liosenstock's  Directory  of  China  is  the  Tdieng-T'ai  Rwlway 

niMUMii  m  wmwma. 

For  som*  tmc  pmtihe  purchases,  of  this  line  have  been  verv 
limited,  and  when  conditions  again  hemma  normal  the  former  policv 

of  mmking  .all  iKMihle  purch,ises  from  ..France  will  prohaWv  he  rZ 

Biimed  to  a  very  comiderahle  extent,  (apeciallj  ,.as  ki  as  thm  Jirmmit 
French  staff  is  in  ■techmail  control  oi  tile  .lina  ^"^"^^  ^'^'^  ^'^''''^ 

TAOKOW-CffllNGHeA,  ,CrAO-CHIN€)  KAILWIY. 

I-OCITION'  AND  HTTINT. 

mJrZkZ  ti!!^*''''^  ^  T^^?™  Honan,ihe  northeastern  end  being 

mt  lnotow,  where  connection  is  made  mth  river  and  canal  tranaoor^ 

,.,fteect»ii  to  ChiBghna  and  the  Jamieeon  mines,  with  a  total  leiiirth 
#1  l«  of95  mies  The  Peyti|.Hankow  Eail^  k  cr^^S 
Hsmhsiwighswn  at  about  the  mildle  of  the  line,  and  this  point  is 
fm  iippoxima*«!y  the  half^-waj  point  between  Pekinir  and  rfankow 
fc^iT'lf  •  ™I«/rom  Peking  and  about  380  mil^from  Hankow! 
What  IS  more  important  than  tie  railwav  in  this  connection  is  tho 
.wcateon  and  fflctant  of  the  mining  concession  covered  bv  the  Pekinir  . 
Syiid«.ate     This  stil  indnd^  all  of  Honan  north  o7  the  Ydlow 

oiZ'wi  ^^f  r^i^  ^oi^  Pit)vince  of  Shansi  sonth  of  th^ 
lireat  Wall— a  triangle  mcluding  many  thousand  square  miles  and 
SnKLJt^       '^"  of  theg^atest^oal  fields  in IC worid^LS 

shiS^rt  wJfZf^^^^  ^'^^  ^^^^^y  ^"4  ^ar^l«  of  standing  long 
BHipment  without  deterioration.    The  Pekiiig  Syndicate  etUl  retains 

irfr!i?if''^'''''  •^*'''  northern  Honan,  but  the  Chinese  authorities 
IltC^  ^^f!T^'^''^^^  ^^  payment  of  2,750,000  taels, 

lf,SL.l;^^^^  5^'*^'^^  ^^  prefereatiia  rights  ii^ 

furnishing  capital,  for  future  developments  in  .this  .area. 

■ftWMMCAi.  mmm. 

The  first  steps  to  secure  this  concession  were  taken  bv  an  Itahan 
Commendatore  Amgelo  Luzatti.  who  visited  Cliiiia  in  1896  and  who 
.wyareetly  studied^  carefullj  tlie  mineral  .resources  of  thiL  district 
He  organized  a  syndicate  m  1897  of  Britiali  and  Ilalian  finand^ 


CHmjL 


99 


with  a  capital  of  £20,000;  this  was  laier  increased  to  £1,500,000  and 
the  object  of  the  syndicate  was  the  develo}>ment  of  the  rich  mineral 
resources  of  this  dktiict  and  the  transportation  and  marketinE  of 
them.  Ha  was  ably  assists  by  a  Chinese  named  Ma  Kie-chon«T 
who  spoke  English  and  French,  In  the  couree  of  time  the  project 
beca«e«tirdy  British,  and  linmHy  an  agreement  was  made  with 
the  British  &  Chinese  (British)  Corporation  to  practically  pool  inter- 
ests in  the  further  mming  and  railway  developments  north  of  tho 
X  angtze  xviver. 

In  July,  1905,  the  Chinese  Government  entered  into  an  agreement 
to  take  over  tills  hne  by  payment  in  gold  bonds  at  90,  be^rinS  interest 
at  o  per  cent  to  the  amount  of  the  actual  cost  plus  10  pei- cent— the 
syiidicate  still  to  receive  20  per  cent  of  the  net  profits.     The  amount 

*'l^''?nL*^^  "^^  £700,000,  to  run  for  30  years  and  redeemable 

after  19  lo, 

„/Tl!®  fr^"?*  *^^'  "^  ^?  railway,  whUe  nominaUy  in  the  hands 
^ii,L^'f"f^V'^  Communications,  is  actually  British  througli  the 
medium  of  the  Peking  Syndicate. 

Of  the  earnings  of  this  Une  ahout  20  per  cent  are  from  passen-rer 
bS  fa,rc(^  "^  '^^  ^"^  ^'^'^^^'  ^'"'"'  *^  P^'  '*"*  ^'^  '*>«  ^»"«i" 

HasENT  Fsrarrs  and  ovtuoos.  fob  putubb. 
10??*  «Pf  ating  Tevenue  of  this  Hne  was  approximately  |;835,000  in 

.ffi  ~^®*'^"^'.  *^^*^  *^<'  payment  of  taxes  and  other  income 
SynEe.  °°°""     '"^     '  ^°  ^^'  "^^  "^  ''^''"'^  ^oes  to  the  Peking 

w^^h^hf^i  '^^  ^yn'l''*^  to  build  the  ext«nsiTB  system  of  rail- 
ZT  fh^rL-  ^^  fF°^o^*^  has  been  a  subject  of  lon^  controversy 
with  the  Oimese  Ciovemmait  authorities.     Several  W  Unes  We 

at^'Sr^^  '  P?f*i-i-'y««n°  **"  ^r^  River  at^P&^^t 
at  present  no  active  step  are  bemg  taken  in  the  building  of  any 

S™*„f  b  f,  P'<'''»*'k*l'«*  forther  extensior^  will  be  b,£lt  in  tho 
Sw^^^i  •*''*  •»?l5'°^  •?  t"?f  district,  in  which  event  the  line 
should  become  mcroBiagly  profitable  as  the  coal  traffic  grows  esne- 
cally  on  account  of  the  high  quality  of  the  cod  and  tWj^cS 
'>Jlity  of  tmnsportmg  it  to  several  seaports.    At  present  shinmenta 

iTne  ^d  tr  P  J'owl;-  ^^e^tuhz  ""^l^^tP^^ 
tSow.  '^'^    ^'^^  ^"^  *'""^  shipments  c'aa  ^^'b^mJTi^ 

MATOaua  JtMD  BQtarMEMT— WiORSSHOPa. 

British  materials  and  practice  have  prevailed  entirely  on  this  Une 
moTLl^'^^^P"'^"*  "^  ^^  ^^  "^7^  ^'^^<^'  there  being  10  loco^ 
BriS^dJi^n^TJI^uSi^'^  '''  '^^'*  •''-•  "-"^^  «-  «^ 
waStntiT  w^l  ^^^"^^^  ^^^  extensive  shops  than  would  seem 
fliZ^W.I»™-  *^    above    amount    of    equipment.    ApparenUy 

M  wIl        '  '^^  °^  '''^''"^  ^  ^^^  "^i^'g  equipment 


1:00 


lADLWAir  MATEBIALS,  IQUIPMElirT,  ABB  SUPPLIES. 


OMQiWIlATWII. 


The  Peking  Syndicate  (Ltd.)  acts  as  manaeer  and  administrator 
of  this  line.  There  is  a  managing  director  (Chinese),  but  the  staff 
IS  all  British.  The  Peking  Syndicate  is  represented  in  PekiBg  by  a 
resident  ^ent  general  and  engineer  in  chief,  witJi  offices  m  the 

ligation  Quarter  at  Peking. 

PIJBCIIASE  OF  STOBBS. 

The  purchases  of  this  line  have  been  very  small  for  some  time,  but 
the  writer  was  advised  by  Mr.  Frodsham/ assistant  agent  general  of 
the  Peking  Syndicate,   that  it  expects  to  undertake  considerable 

work  at  the  conclusion  of  the  war,  and  that  it  will  continue  its  policy 
of  making  purchases  so  far  as  practicable  from  British  sources. 
Until  such  time  as  the  Chinese  take  more  active  control  of  this  Hne 

it  wiU,  probably  remain  practically  a  closed  market. 

KAIFENG-HOMAM  (PIENLO-LUNGHAI)  LINES. 

This  system  is  known  by  a  variety  of  names,  but  the  official  Eng- 
Hsh  name  used  by  the  Ifinistry  of  Communications  as  Kaifeng- 
Honmn  Lines.  The  Chinese  name  for  the  central  or  original  section 
is  Pienlo,  and  the  system  is  frequently  so  designated.    The  eastern 

section  IS  known  as  the  Eastern  Lungfiai,  and  the  western  section  as 
the  Western  Lunghai.  The  system  is  often  referred  to  as  the  Lmighai 
Lines,  and  at  times  as  the  Pienlo-Lunghai  Lines. 

LOCATION  AND'  EITINT. 

The  eastern  terminus  is:  at  Hsuchowfu,  where  connections  are 
made  with  the  Tientsin-Pukow.  This  point  is  about  210  miles  north 
of  Pukow,  to  which  port  on  the  Yangtze  Eiver  a  considerable  por- 
tion of  the  business  origkiating  on  this  line  is  taken.  The  line  runs 
in  a  westerly  direction  through  western  Kiangsu  and  northern 
Honau  to  Kwanyintang  (a  total  of  344  miles),  passing  through  the 
important  Chinese  cities  of  Kaifengfu  and  Honanfu  and  crossing  the 
Peking-Hankow  Railway  at  Changchow,  about  430  miles  south  of 
Peking  and  320  miles  north  of  Hankow.  An  extension  of  this  line 
18  now  under  construction  farther  west  to  Sianfu,  the  capital  of  the 
Province  of  Shensi.  A  considerable  part  of  this  line  runs  through 
the  section  ©f  China  that  is  frequently  subject  to  floods,  which  at 
times  cause  much  damage.  The  railway  has  been  a  means  of  afford- 
ing relief  to  people  made  destitute  by  these  floods.  There  are  exten- 
sive coal  deoosite  along  the  central  and  western  portions  of  the  line 
but  up  to  the  present  time  there  have  been  no  extensive  develop- 
ments. 

HISTORICAL  S'URVET. 

Tlie  Pienlo  section  of  this  line  from  Kaifengfu  to  Hunanfu,  a  dis- 
tance of  about  120  mOes,  was  first  suggested  in  1899.  The  pre- 
himnary  agreement  was  made  in  1902  between  Mr.  Sheng,  then 
director  general  of  the  Chinese  Imperial  Raiways,  and  Monsieur 
Armand  louffant,  representing  a  Belgian  company,  the  Compagnie 
Wnerale  des  Chemins  de  Fer  et  Tramways  en  Chine.  This  contract 
provided  a  loan  of  £1,000,000,  issued  at  90  and  bearing  5  per  cent 
mteresi,  to  run  a  total  of  30  years,  amortization  to  begin  the  eleventii 


CHINA. 

year,  but  with  the  important  privilege  of  refunding  at  par  any  time 
after  the  beginning  of  amortization.  The  construction  of  this  part 
of  the  line  was  carried  out  very  expeditiously,  to  the  satisfaction  of 
the  Chinese  authorities. 

In  1912  and  1913  the  Chinese  authorities  decided  to  extend  this 
line,  and  as  they  could  not  raise  the  necessary  funds  from  native 
sources  and  the  above  agreement  gave  this  Belgian  company  pref- 
erence for  furnishing  further  funds,  an  additional  loan  of  250,000,000 
francs  was  negotiated  and  issued  at  94  par,  5  per  cent  interest,  amor- 
tization beginning  the  eleventh  year  of  the  loan,  and  the  loan  to  run 
a  total  of  40  years,  with  the  right  of  redemption  of  part  or  all  of  the 
loan  any  time  after  tlie  tenth  year  at  102J. 

This  new  agreement  made  a  very  important  revision  in  the  first 
agreement,  in  cancelling  the  clause  for  the  Belgian  company  to 
receive  20  per  cent  of  the  net  profits.  The  new  loan  does  not  grant 
the  company  this  portion  of  the  net  profits.  Both  these  agreements 
are,  in  all  features,  very  similar  to  the  Peking-Hankow  original 
agreement,  in  which  case  the  loan  was  refunded  by  the  Anglo-French 
loan  in  1908.  Payment  of  interest  and  principal  is  guaranteed  by 
the  Chinese  Government,  and  the  railway  property  is  also  security 
for  this  loan. 

Wliile  this  loan  was  with  a  Belgian  company,  most  of  the  actual 
funds  came  from  French  subscribers. 

The  control  of  the  loan  is  still  Franco-Belgian,  with  the  French 
mterests  largely  predominating,  no  doubt. 

CLASS  OF  TRAFFIC 

In  1916  the  traffic  earnings  on  the  original  line,  the  Pienlo  section, 
were  about  equally  divided  between  passenger  and  freight  receipts, 
but  with  the  extensions  and  development  of  business  there  will 
probably  be  a  greater  increase  of  freight  traffic  than  of  passenger 
traffic.  The  larger  part  of  the  freight  traffic  consisted  of  mineral  and 
agricultural  products,  coal  being  the  largest  item. 

PRESENT  PROFITS  AND  OUTLOOK  FOR  FUTURE. 

The  Pienlo  section,  with  earnings  of  nearly  $1,287,000  in  1916, 
showed  a  surplus  approaching  123,000  after  payment  of  all  operating 
expenses  and  income  charges. 

As  already  mentioned,  this  line  is  now  being  extended  to  Sianfu, 
the  capital  of  the  Province  of  Shensi.  Several  further  extensions 
are  considered  and  probably  will  be  made  in  the  course  of  time, 
particularly  one  to  Lanchowtu,  the  capital  of  the  Province  of  Kansu 
a  distance  of  some  300  miles.  It  has  also  been  proposed  to  extend 
this  line  to  a  port  east  of  Hsuchowfu,  but  the  building  of  this  exten- 
sion is  probably  somewhat  remote  and  hardly  seems  warranted  in 
view  of  the  present  connections  with  the  Peking-Hankow  and  Tien- 
tsin-Pukow Kailways,  which  make  available  through  interchange  of 
traffic  to  the  Yangtze  River  ports  of  Hankow  and  Fukow. 

ROADWAY  AND  TRACK  MATERULS— ROLLING  STOCK— WORKSHOPS. 

Portions  of  this  hne,  particularly  the  western  parts,  run  through 
a  rough  country,  which  has  made  construction  both  difficult  and 
expensive,  reqmriug  a  considerable  number  of  tunnels  and  bridges. 


lOi 


EAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


The  line,  however,  is  well  and  substanfciallv  buOt,  althougli,  as  on 
other  Chines©  railways,  the  bridges  are  designel  and  constructed 
along  the  hnes  of  those  on  the  Pekmg-Hankow.  All  the  roadway  and 
track  materials  follow  the  Franco-Belgian  standards  and  practice, 

and  most  of  them  came  from  Belgium  or  France,  including  the  first 
rail,  which  was  in  12-meter  (47-foot  3-inch)  lengtlis.  Tlie  rail  used 
for  recent  construction  has  been  the  SS-pound  (Mmm  section  from 
the  Han-Yeh-Ping  works. 

This  system,  hke  other  Chinese  Govommont  Railways,  has  a  rather 
anall  amount  of  rolling  stock.  This  is  along  the  hnes  of  the  Franco- 
Belgian  praijtice  and  most  of  it  is  of  French  or  Belgian  manufacture 
but  assembled  m  the  workshops  at  Chengchow* 

The  general  repair  shops  are  at  Chengchow  and  are  arranged  for 
the  aasembhng  of  manufacturing  equipment  and  for  the  making  of  ail 
classes  of  repaii-s  to  the  roUing  stock  of  these  lines, 

<*EC2Al«IlATION  ASTO  PBKSONN'H., 

There  k  a  director  general  of  these  lines,  who  is  now  located  at 
Peking.  There  are  also  at  present  sevenal  managing  directors,  but 
It  IS  probable  that,  after  the  completion  of  the  construction,  the 
orgaEization  of  this  line  wil  be  changed  to  the  usual  operating 
»rrangem,eEt,  with  one  managing  director  in  charge  of  the'  system^ 
who  will  probably  be  located  at  Chengchow.  At  present  the  tech- 
iijcal  management  is  ahnost  entirely  m  the  hands  of  the  Belgian 
staff. 

The  writer  was  unable  to  obtain  information  enabhng  him    to 

prepare  a  complete  directory  of  this  Hue  (see  p.  205),  particularly  as 
reganls  the  separation  of  the  permanent  organization  from* the 

temporary  construction  oi-ganization. 

PURCHASE  OP  STORES. 

Much,  difficulty  has  been  experienced  in  obtaining  the  needed 
materials  for  the  construction  of  this  Hne.  Since  the  beginning  of 
the  war,  much  material  has  been  bought  from  whateyor  sources  wore 
aYailable,  when  it  could  not  be  got  in  China.  It  is  probable  that 
this  line  will  adopt  the  general  pohcy  of  purchases  already  referred 
to  m  connection  with  the  Pekmg-lJankow  Hne;  in  fact,  it  seems 

Suite  probable  that  in  the  course  of  time  the  purchases  for  the  Peking- 
[ankow  Railway,  the  Cheng-Tai  Railway,  and  the  Kaifeng-Honan 
8¥stem  may  be  consoHdated  and  supervised  by  the  Ministry  of 
Communications,  especially  as  the  rcciuirements'of  these  lines  are 
more  nearly  alike  than  those  of  any  otlier  three  lines  in  China  that 
are  ah  physically  connected. 

This  hne  will  require  a  considerable  amount  of  additional  roiling 
stock  for  the  operation  of  the  extensions  now  nearkg  completion,  and 
it  is  not  thought  probable  that  the  need  for  this  can  be  deferred  until 
such  time  as  it  can  be  furnished  from  Belgium  or  France  after  the 
end  of  the  war.  In  fact,  information  has  been  received  from  the 
American  commercial  attach^  at  Peking  that  the  Kaifeng-Honan 
Railway  administration,  through  the  Belgian  minkter  at  Peking, 
has  made  inquiry  concerning  tiie  purchase  of  the  equipment  from 
American  sources— not  only  rolhiig  stock  but  also  roadway  and  track 
iiiateri.ala. 


CHINA. 
SHANGHAI-NANKING  (HU-NING)  RAILWAY. 

LOCATION  AND  EITENT, 


103 


This  hne  starts  at  Shanghai,  at  present  the  most  important  trading 
center  m  Chma,  and  extends  for  193  miles  in  a  northwesterly  direc- 
tion across  the  Province  of  Kiangsu  and  through  the  important 
Chinese  cities  of  Soochow  and  Chinkiang  to  Nanking,  on  the  south 
bank  of  the  Yangtze  River,  where  there  is  ferry  connection  with  the 
Tientsin-Pukow  Railway  at  Pukow.  There  is  a  10.5-mile  branch 
from  Shanghai  to  the  port  of  Woosung  on  the  Yangtze  River. 

mSTOBICAL  SURVEY. 

This  hne  is  the  first  Hnk  of  what  at  one  tunc  promised  to  be  a  very 
extensive  system  of  British  railways  in  Chma,  to  cover  the  entire 
length  of  the  Yangtze  River  Valley  and  finally  to  connect  with  the 
Indian   system   of   railways    through    Yunnan    and    Burma.     The 

Eroposed  Pukow-Sinyang  line  already  mentioned  was  to  be  a  second 
nk  m  this  comiection,  wliich  would  give  entrance  to  Hankow  over 
the  Pekmg-Hankow  Railway.  Tlie  next  link  was  to  be  the  proposed 
Hankow-Szechwan  line  to  Chengtu,  the  capital  of  the  rich  and  im- 
portant Provmce  of  Szechwan.  The  fourth  link  was  to  be  a  line 
from  Chengtu  to  Yunnanfu  and  the  fifth  hnk  a  line  from  this  point 
to  the  Burma  frontier.  The  consummation  of  the  plan  for  this 
system  appears  to  be  remote  at  the  present  writing. 

The  preliminary  agreement  for  the  Shanghai-Nanking  line  was 
signed  m  May,  1898,  between  Mr.  Sheng,  then  director  general  of  the 
Clunese  Impeiial  Railway  Administration,  and  the  British  &  Chinese 
Corporation,  for  which  concern  the  Hongkong  &  Shanghai  Bankiiig 
Corporation  were  the  bankei's.  On  account  of  the  Boxer  troubles 
the  final  agreement  was  not  concluded  until  Julv,  1903,  and  the  Ime 
was  not  finally  completed  and  put  in  service^  until  March,  1908. 
Ihis  railway  loan  agreement  provided  for  an  amoimt  not  to  exceed 
£3,250,000,  to  be  issued  at  90,  bearing  5  per  cent,  and  interest  durin<y 
construction  was  paid  out  of  the  proceeds  of  the  loan  on  the  aljove 
terms;  £2,225,000  was  issued  in  1904,  and  a  second  issue  was  made  in 
1907,  but  this  last  was  at  95*.  The  date  of  maturity  of  both  of  these 
issues  IS  1954,  50  years  from  the  date  of  the  first  issue,  and  both 
Lssues  are  redeemable  at  102i  from  1917  to  June,  1929,  inclusive, 
and  for  the  remaining  25  years  at  par.  In  connection  with  a  special 
clause  in  the  agreement  regardmg  land  purchases,  a  third  issue  was 
made  m  December,  1913,  for  £150,000,  issued  at  92  and  paying 
6  per  cent  mterest,  and  this  issue  is  to  mature  November  30,  1923. 

In  addition,  there  is  a  complicated  provision  for  certificates  to  he 
issued  for  one-fifth  of  the  outstanding  loan— these  certificates  to  be 
issued  to  the  corporation  and  to  be  paid  at  the  dates  of  the  redeeming 
of  the  bonds,  this  payment  to  he  made  from  20  per  cent  of  the  surplus 
earnings  after  payment  of  all  expenses  and  income  charges.  There  is 
a  somewhat  sunilar  provision  for  the  Government  to  issue  certificates 
for  the  other  four-fifths  of  the  loan,  which  in  turn  provides  for  the 
disposition  of  the  other  80  per  cent  of  the  surplus  earnings.  This 
clause  has  already  been  the  cause  of  considerable  feeling  and  dis- 
cussion. 

There  has  been  a  good  deal  of  discussion  with  regard  to  the  hic^h 
cost  of  this  Ime.    The  cost,  accordmg  to  Mr.  Kyle's  study,  was  about 


BAIL  WAY  MATEKIALS,  BQUIPMEXT,  AND  SUPPLIES... 

S150,0'00  per  mile  of  line:— about  $12,000  more  than  that  of  the 
TimtsmAkow  and  ahon,t  $38,500  more  than  the  average  cost  of 

all  the  Chinese  Goveminent  Kaihra^^s.  One  result  of  this  is  to  giye 
force  to  the  Chinese  contention  that  the  foreim.  ensdneer-in-chief  of 

Buch  lines  shonlct  not  have  nnlimited  authority  as  to  the  making  of 
expenditures.  This,  line,  however,  extends  through  a  densely  popu- 
lated district  and  was  wel  and  substantially  buOt,  with  commodioi^s 
and  ornate  stations.   ^The  capital  for  the  construction  of  this  Hue 

was  entirely  from  British  subscribers. 

PMM'INT  CONTROL. 

'On  'December  31, 1916,  there  were^  outs.ta.nding  capital  obligations 
to  the  amoimt  of  $3.3,62.8,185,  of  which  129,955,184  represented 
mortgage  bonds  and  $3,672,671  permanent  investments  in  the  prop- 
erty 'by  tlie  Chinese  Govenunent.  On  the  8..ame  date  t.here  was  an 
ac.cuninlated  deficit  of  $2,164,800,  of  which  $1,910,224  represented 
imextinguishcd  discomits  on  the  funded  debt.  There  is  no  provision 
in  t.he  'loan  for  yearly  amortization,  the  only  provision  being  the 
re.demptiou  arrangement  already  mentioned.  Financial  control  of 
the  mortgage  bonds  ,is  in  British  hands  t.hrough  the  Brit.ish  &  Chmese 
Corporation. 

CLASS  Of  TlAFPIC. 

Tlie  passenger  earnings  of  this  line  for  the  years  1915  and  1916 
were  about,  two  and  three-fourths  times  as  much  as  the  freight  earn- 
ings, but  the  freight  tra.ffic  for  some  years  past  has  been  growing 
faster  th.a.n  the  passenger  business.  Both  passenger  fares  andfreight 
rates  are  lower  on  this  line  than  on  any  of  the  other  Chinese  Govern- 
ment Railways,  on  account  of  .compctit  ion  from  canal  and  river  trans- 
portation. 'The  railway  'has  increased  the  freight  rates  considerably 
in  the  last  few  3r'ears.;  between  Januarjr,  1913,  and  February,  1915, 
three  .$2  advanc'es  were  math'*  on  certain  waeon-load  rates. 

Mo  extensions  of  this  line  are  contemplatea  at  the  present  writing. 

riUSENT  PBOTOS  AND  ODTLOOS  FOB  F'UrURE. 

Both  passenger  .and  freight  business  has  been  growmg  steadily, 
freight  rates  luive  been  advanced  from  time  to  time,  and  each  year 
is  showing  .a  better  operating  ratio.  In  1916,  with  an  in.cro.ase  in 
operating  revenues  of  .$400,000  over  1915.  there  was  a  decrease  in 
operating  expenses  of  about  $20 ,.000.  This  line  runs  through  a 
densely  populated  district,  with  varied  a.gri€ult.ural  products  and 
with  a  growmg'  industrial  development,  and  although  there  is  and 
will  be  mtle  mnieral  traffic  the  line  will  probably  show  an 
profit  from  year  to^  ,year. 

mg%  A  Fk;1Er  kW    A  M'tli  trio  a  #^V    HM  a. *■*.■*!>.'■  a  ■  0 


mcreasnig 


The  roadway  .and  track  materials,  of  this  line  are  strictly  along  the 
lines  of  British  pract.ice,  and  most  of  tlie  materials  &m  of  British 
manufacture,  .altliough  in,  recent  years  some  American  devices  have 
been  used,  such  as  rail  anchors,  .All  'bridges  oa  this  line  are  perma- 
nent structures,  fo.llowing  British  practice,  and  are  somewhat  heavier 
than  the  bridges  on  some  of  the  other  Chinese  railways,  particularly 


■the  Fekmg-Hankow. 


'vxLIJMa* 


ROLLING  STOCK. 


105 


All  rolling  stock  is  along  the  lines  of  British  practice,  and  practi- 
cally all  of  it  is  of  British  manufacture.  Since  physical  connections 
have  been  made  with  the  Shanghai-Hangchow-Nrngpo  Railway, 
interchange  of  rolling  stock  now  prevails  between  these  two  railways, 
which  are  under  ioint  management.  A  considerable  portion  of  the 
rolling  stock  on  the  latter  line  is  of  American  design  and  manufac- 
ture. The  table  on  nage  76  shows  the  amount  of  rolling  stock  on 
these  two  lines,  which  is  proving  inadequate  to  handle  the  growing 
business. 

WORKSHOPS. 

The  general  workshops  are  located  at  Woosung,  about  10  mOes  from 
Shanghai.  These  are  reasonably  well  equipped  and  are  arranged 
for  the  making  of  repairs  to  all  classes  of  rolling  stock  for  both  the 
Shanghai-Nankmg  and  the  Shanghai-Hangchow-Nmgpo  Railways. 
Capt^city  is  also  provided  for  the  erection  of  a  small  number  of  freight 
and  passenger  cars. 

ORGANIZATION. 

The  organization  of  this  line  conforms,  in  a  general  way,  to  the 
arrangement  called  for  by  the  orders  of  the  Ministry  of  Commimica- 
tions  (see  p.  63),  but  the  British  engineer-in-chief,  according  to  the 
terms  of  the  agreement,  has  verv  extensive  executive  authority  in 
connection  with  this  line.  The  general  staff  of  this  line  also  has 
charge  of  the  Shanghai-Hangchow-Nmgpo  Ihie,  as  explained  later. 

PURCHASE  OP  STORES. 

Purchases  for  this  Ime  and  also  for  the  Shanghai-Hangchow- 
Nmgpo  are  made  through  the  chief  storekeeper  of  the  stores  depart- 
ment, whose  headquarters  are  at  Shanghai.  According  to  the  loan 
agreement,  preference  is  to  be  given  to  supphes  from  Chinese  sources, 
but  without  doubt  preference  is  next  given  to  articles  of  British 
manufacture.  Considerable  amoimts  of  materials  are  bought  from 
concerns  m  Shanghai,  and  some  of  these  come  from  American  sources. 
It  is  not  the  general  practice  for  this  line  to  advertise  for  tenders  as 
extensively  as  certain  other  lines. 

SHANGHAI-HANGCHOW-NINGPO  (HU-HANG-YUNG)  RAILWAY. 

LOCATION  AND  EXTENT. 

This  line  starts  in  Shanghai,  now  using  the  same  passenger  station 
as  the  Shanghai-Nanking  Ime,  and  rmis  116  miles  m  a  southwesterly 
direction  through  the  Provmces  of  Kiangsu  and  Chekiang  to  the 
important  city  of  Hangchow,  at  the  head  of  the  Bay  of  Hangchow. 
At  Shanghai  there  is  a  4i.mile  line  to  the  first  terminal  built  in 
Shanghai,  but  this  is  now  used  as  a  branch  station  and  connections 
are  made  with  the  tlu-ough  trams,  which  are  all  run  from  the  Shanghai- 
Nanking  station.     Near  Hangchow  there  is  a  3i-mile  branch. 

This  project  contemplates  a  car  ferry  across  the  river  at  Hangchow 
on  the  completion  of  the  line  to  Nnigpo,  a  total  distance  of  about  110 
miles,  of  which  484  miles  are  now  completed  and  in  service  from 
Nmgpo  to  the  Tsao  Ngo  River.    About  60  miles  are  stiE  to  be  con- 


106  :llAILWAf  MATERIALS,  .BQW'IPMENT,  AND  SUPPLIES. 

slractcd,  and  tWs  work  k  now  in  progress  but  proceeding  reir  slowlv. 
.IMmgpo  m  a  little  sontli  of  east  of  Haiigchow  and  is  one  of  tho 
'important  tmde  centers  of  this  densely  populated  part  of  Cliina. 

.■wwaioNB  auoGnrip. 

It  seema  nroliaMe  that  in  the  courae  of  time  this  line  will  b©  ex- 
tended sonthwestward  from  Hangchow  tlirough  the  Provinces  of 
Uiekiang  and  Kiangsi,  connecting  with  the  Kiangsi  (Nan-Shan) 
llailwav  near  Nanchang,  thus  making  rail  connections  from  Shanghai 
to  the  Yangtze  River  port  of  Kiukiang  and  running  through  a  coun- 
trj  that  would  probably  furnish  a  profitable  local  traffic,  particularly 
111  carrying  agricultural  and  mineral  products  to  the  ports  of  Shanghai. 
Hangchow,,  and  Kiukiang.  "  ^      ' 

^  A  Mne  has.  abo  heen  projected  between  Hangchow  and  Wuhu,  an 
important  port  on  the  Yanfftze  River  between  Nanking  and  Kiu- 
kiang,^ and  some  work  was  clone  on  the  Wuhu  end  of  tins  line,  but 
there  18  httle  probability  of  tWs  line  being  completed  in  the  imme- 
diate future. 

There  has  also  been  a  suggestion  (which  seems  entirely  practical) 
to  extend  this  hne  farther  from  Nanchang  to  Shiuchow  in  the  Prov- 
mce  of  Kwangtung,  where  connections  would  be  made  with  the 
Lanton-Hankow  hue  when  the  latter  is  comp'leted,  thus  makmg  an 
mtenor  rail  line  from  all  the  above-mentioned  ports  to  the  ports  of 
ijanton  and  Hankow  and  the  densely  populated  district  in  southern 
Uuna,  Tins  would  tend  to  stabUize  conditions  in  tliis  part  of  China. 
While  these  hues,  if  budt,  m,ighfc  in  some  ways  be  considered  as 
competing  with  water  transportation,  the  result,  in  all  probability 
would  be  a  supplementing  of  both  the  water  and  rail  transportation' 
particularly  in  the  carrymg  of  agricultural  products  and  minerals  to 
these  ports.  In  no  instance  would  these  additional  lines  paiallcl 
present  water-transportation  routes,  as  did  the  Shanghai-Nankinff 
Kailwiiy  between  Shanghai  and  Chinkiang  and  Nanking  and  the 
baanghai-Hangchow-Ningpo  Railway  between  Shanghai  and  Hangchow. 

HlSronCAI.  SIIITBY. 

The  prelmiinapr  agreement  for  this  line,  under  the  title  of  the 
Soochow,  Hangchow  &  Nmgpo  Railway,  was  made  in  1898  and,  as 
already  mentioned,  was  one  of  the  features  of  the  ''Battle  for  Con- 
cessions," m  which  the  British  &  Chinese  Corporation  secured  this 
^ncession  and  the  concessions  for  the  Shanghai-Nanking  and  Canton- 
Kowloon  lines,  which  have  since  been  built,  and  for  the  Pukow- 
hmyang  hue,  which  is  now  under  agreement,  though  Mttle  is  being 
done  atjiresent  on  ite  construction. 

The  British  &  Chinese  Corporation,  after  securing  these  conces- 
sions, devoted  all  Its  attention  and  available  funds  to  the  completion 
of  the  bhanghai-Nanking  and  the  Canton-Kowloon  lines  and  did 
nothing  with  this  concession.  Mr.  Shong,  already  mentioned  several 
tones  as  then  director  general  of  the  Chinese  Imperial  Goveriunent 
Railway  Administration,  notified  the  corporation  in  1903  of  the  can- 
eellation  of  this  concession,  and  on  September  23,  1905,  an  unperial 
©diet  was  issued  confiming  tliis  cancellation  and  transferring  tho 
right  of  construction  and  operation  to  a  Provincial  Railway  Bureau 
the  road  to  be  built  with  Cliiiieae  capital  only.    With  this  authority 


CHmA.  107 

two  companies,  the  Kiangsi  Railway  Co.  and  the  Chekiang  Railway 

?e -Ano  o^L^'^^f  "^t^"^^*^'?  ^^^^  ^^^h  S3,000,000  and  the  second  with 
«5,000,000,  all  subscribed  and  paid  up  by  Chinese  subscribers.  After 
the  Chinese  had  made  this  progress  and  had  the  work  under  way,  the 
British  &  Chinese  Corporation  took  the  matter  up  energetically  and 
would  not  accept  the  cancellation  of  the  concession,  but  after  much 
negotiation  a  compromise  was  effected  and  an  agreement  signed  for 
a  loan  of  £1,500,000,  at  5  per  cent.  However,  the  funtls  from  this 
were  never  actually  used  in  the  construction  of  the  railway,  although 
the  Chinese  Government  carried  the  loan  for  some  five  years  and  paid 
the  interest  on  it,  this  condition  prevaihng  untd  the  road  was  nation- 
ateed  in  1913  as  a  part  of  the  present  Chinese  Government  Railways 
under  the  direction  of  the  Ministry  of  Communications. 

PRESENT  CONTROL  AND  ORGANIZATION. 

At  present  there  is  a  managing  director  in  charge  of  both  the 

Ti  *^1;^?^^"^ ^^^'^  ^^^  ^"^^^  ^**^  headquarters  at  Shanghai: 
and  the  Bntish  staff  in  charge  of  the  Shanghaj-Nanking  is  in  charge 
of  the  teclmical  administration  on  this  hne  but  does  not  have  such 
executive  authority  as  is  exercised  on  the  Shanghai-Nankin?  line 
on  which  the  loan  agreement  is  still  in  fuU  force.  It  might  possiblv 
be  correct  to  say  that  the  duties  of  the  British  staff  on  the  Shaiiffhai- 
Mangchow-Nmgpo  line  are  chiefly  technical  and  advisory,  though 
they  are  administrative  as  well  to  a  very  considerable  extent  The 
staff  of  both  hues  IS  parti V  British  and  partly  Chmese,  the  most  im- 
portant  positions  being  filled  by  the  British. 

CLASS  OF  TRAFFIC— OUTLOOK  FOR  FITTURE. 

The  political  troubles  in  the  Provmce  of  Chekiang  for  more  than 
wXr*^'  ^^  ^^  ^\^f  «f  1916  affected  advemly  the  earnings 
lor  that  year.  In  1915  the  passenger  earnings  were  two  and  one- 
wli  1^*"%  I  ^"'^'f?'^  earnings,  and  in  1916  the  passenger  earnings 
were  about  three  tunes  the  freight  earnings.  However  since  this 
line  passes  through  a  rich  agricultural  district  and  considerable  in- 
fw  a  ^^Y^f  Pf  ^^t  may  be  expected  to  take  place,  it  is  probable 
that  the  freight  business  wiU  grow  faster  than  the  passenger  business 
and  that,  m  the  course  of  time,  the  Hne  will  show  a  profit  after  pay- 
mg  all  operating  expenses  and  income  charges. 

ROADWAY  AND  TRACK  MATERULS. 

The  Chinese  have  pointed  to  this  railway  as  an  example  of  what 
should  be  the  initial  expense  incurred  in  building  Chinese  radwavs  of 
this  class.  The  construction  cost  per  mUe,  as  shown  by  Mr.  Kyle's 
study,  is  a  httle  less  than  $45,000  per  mile,  against  $188,000  for  the 
Canton-Kowloon  and  $150,000  for  the  Shanghai-Nankiilg.  British 
engmeers  m  China,  on  the  other  hand,  state  that  this  line  is  of  very 
mferior  construction  and  that  poor,  cheap  materials  were  used 

rreference  was  given  to  roadway  and  track  materials  from  Chinese 
sources.  Ihe  rails  and  fastenings  came  from  the  Han-Yeh-Puiff 
works  and  are  mostly  the  85-pound  standard  Chmese  section.  aB 
purchases  were  made  m  competition,  and  a  good  deal  of  the  roadway 
ana  track  material  was  purchased  from  American  sources. 


1  AO 


RAILWAY  MATEBIALS,  1%U1PM,BNT,  AND  SITPPLIES. 


lOitlNG  .STOCK, 

This  line  has  a  deeided  variet^v  of  :r()Iliii«:  stock,  aJl  of  which  was 
purchased  under  competition  anci  furnished  from  .American,  British, 

German..,  and  Chinese  sonrces.  Of  the  36  locomotives,  11.  are  Ameri- 
can,  12  .B.rit.iish,  and  13  German.  Many  of  the  passenger  cars  are  of 
American  manufactun^;  some  of  them  hmve  heen  criticized  on  account 
of  .ma.k©sh.iffc  chancres  to  .meet  tlio  specifications,  but  these  faults 
seem,  to  have  had  their  origin  in  the  specifications' rather  than  in  the 
wo.r.km.ftn.ship  of  t..he  eciuipnient..  This  situation,  however,  affords 
a  very  good  example  of  t^he  desirabihty  (in  fact,  the  necessity) 
of  the  Chi.n.ose  Government  Rai.lways.  hei.ng  pemiittod,  without  regard 
to  the  restrict.ions  of  the  existing  hmn  agreements,  to  lav  out  standard 
desi.gn.s  and  .formulate  definite  spec.i.ficatio.ns  for  all  their  requirements. 

WOMESMCira. 

In  addition  to  the  Wooaimg  shops  of  the  Shanghai-Nanking  Eail- 

way,,  already  mentio.ned,  there  a«  workshops  at  Hangchow,  where 
some  repairs  to  the  rolling  stock  are  taken  care  of  and  where,  some  of 
the  assembhng  of  the  original  eciuipnient  was  handled. 

FIJBCHASE  OP  STOllS. 

^  Substantially  the  same  remarks  apply  to  the  purchases  for 
line  as  to  those  for  the  Shancjhai-Nankmg,  the  same  chief  storekc 

being  in  charge  of  stores  and  purchas.es  for  both  .lines. 


torekeeper 


CANTON-HANKOW  ■(YlfflH-HAN)  EAttWAf  SYSTEM. 

Tiiis  system  consists  of  tlie  .line  from  Wucha..ng  to  Chucbow,  the 
Chucbow-Pingbsiang  R.a!lwav.  the  (.'anton-S.amshui  (Kwang-Sam) 
Ilailway,  and  the  .Ikw.angtung  Yueh-Han  .E.ail.w.ay  Co.  (Ltd.). 

.M)CATIO.N  AND  laiTENT. 

'Tlie  trunk  line  of  this  system  is  to  connect  Canton  and  its  densely 
set.tlcd  hinterland  by  a  .line  rmining  nort.h  through  the  Provinces  of 
K.w.angtu.ng,  .Hunan,  and.  Hupeh,  with  Wuchang,  on  the  south  bank 
of  the  Yangtze  K.irer  opposite  Hankow,  and,  thi'ough  this  gateway, 
w.i.th  :North  CTIiina  by  way  of  th.e  Peking-Hankow  Railway  .and  with 
tlie  Y.angtze  River  ports  by  the  present  river  lines.  Changsha  is  a 
very  miportau.t  citv  on  this  line,  about  200  miles  south  of  Hankow; 
coiinection_  is  m..ade  there  with  water  transportation  lines.  This 
railw.ay,  without  question,  is  the  m.ost  important  line  now  being  con- 
structed or  contemplated  in  any  part  of 'China,  .and  its  completion 
would  doubtless  do  more  tO'  stabilize  China  as  a  whole  than  the 
co.inpletjon  of  .any  other  one  line,  except  possibly  a  line  to  Chent^tu 
in  Szechwan.  ^ 

This  S3^st«m  is  to  be  constituted  by  the  ma..in  trunk  line  from  Can- 
ton to  Wuchang,  toMtlier  with  the  present  brandies  from  Canton  to 
Sainshui  and  from.  ■Chucbow  to  Finglisiang,  both  of  which  have  been 
completed  and  in  service  for  several  yea.rs.  The  latter  line  is  the 
one  th.at,  for  several  ve.ars,  has  transported  tlie  coal  from  the  Ping- 
hsiang  collieries  to  Chuchow,  whence  this  supply  of  fuel  has  been 
taken  to  Hankow  for  the  Han-Yeh-Ping  Iron  and  Steel  Works. 


Both  these  branches  at  present  come  under  the  direction  of  the 
Ministr;^  of  Communications.  The  first  is  known  as  the  Canton- 
Samshui  (Kwang-Sam)  line  of  the  Chinese  Government  Railways. 
While  this  will  ultimately  become  a  part  of  the  Canton-Hankow 
system,  it  will  continue  to  be  operated  for  some  years  as  a  separate 
Ime— probably  until  the  main  trunk  line  is  completed.  The  line 
from  Changsha  to  Pinghsiang  known  as  the  Chuchow-Pinghsiang 
line  of  the  Chinese  Government  Railways,  has  also  been  operated  a^ 
a  separate  line,  but  since  the  practical  completion  of  the  new  line 
from  Wuchang  to  Chajigsha  this  entire  stretch  of  265  miles  from 
Wuchang  to  Pmghsiang  is  now  being  operated  as  the  Canton-Hankow 
Railway,  with  headquarters  at  Wuchang. 

The  line  from  Canton  to  Shiuchow,  a  distance  of  about  140  miles 
is  practically  completed  but  is  being  operated  by  a  private  corporal 
tion  known  as  tlhe  Kwangtung  Yueh-Han  Railway  Co.  (Ltd.). 
When  the  remainder  of  this  trunk  line  is  comnleted  howp^vAr  tKia 
section  will  be  taken  over  as  a  part  of  the  CantonlfiZkow  mai^ 
line,  under  the  direction  of  the  Ministry  of  Communications  to  be 
operated  as  one  of  the  Chinese  Government  Railwaj^s.  ' 

There  is  do  physical  connection  between  the  south  end  of  this 
line  and  the  Canton-Samshui  lines  at  Canton.  The  city  of  Canton 
lies  on  the  northeast  side  of  the  Pearl  River.  On  this  side  the  Kwang- 
tung Railway  starts  and  runs  in  a  northerly  direction,  while  tlio 
Canton-Samshui  starts  on  the- southwest  side  of  the  river,  opposite 
the  main  city  of  Canton,  and  runs  in  a  southwesterly  direction 
There  is  also  no  physical  connection  between  either  of  these  lines  and 
the  Canton-Kowloon  section  of  the  Chinese  Government  Railways 
which  will  be  mentioned  later.  The  part  of  the  main  trunk  line 
that  remains  to  be  completed,  from  Chuchow  to  Shiuchow  (a  dis- 
tance of  less  than  250  miles),  is  through  a  rough  country  where  many 
tunnels  and  much  bridging  will  be  required.  This  condition  with 
the  present  high  prices  of  materials,  will  probably  make  the  total 
cost  of  this  work,  upon  completion,  about  $25,000,000  (gol.d). 

mSTOKICAL  SURVEY. 

The  history  of  this  line  is  long  and  varied.  The  Canton-Hankow 
project  at  one  tune  constituted  what  to-day  may  be  considered  the 
only  actual  railway  concession  ever  held  by  American  interests  in 
China.  The  Hukuang  Radway  loans  and  the  Sienis-Carey  projects 
can  hardly  be  regarded  as  concessions,  but  are  rather  loan  and  con- 
struction agreements  for  the  building  of  railways  for  the  Chinese 
Government. 

The  original  agreement  for  this  line  was  held  by  the  American- 
Chinese  Development  Co.  and  was  signed  in  April,  1898.  Mr.  Sheno- 
already  mentioned  several  times,  was  then  the  director-general  of 
this  project  and  a  so  of  the  Peking-Hankow  Railway.  Senator 
Lalvin  b.  Brice,  backed  by  strong  American  interests,  was  the  head 
of  the  American  syndicate.  The  amount  of  the  loan  was  $40,000,000 
(gold),  issued  at  90  per  cent,  paying  5  per  cent  interest,  rumiin*^'  for 
50  years,  and  to  be  secured  on  the  property  of  the  railway  and  (Guar- 
anteed by  the  Chinese  Imperial  Government.  In  addition*"  the 
syndicate  was  to  receive  5  per  cent  for  services  and  supervision  of 
the  purchase  of  materials,  as  well  as  20  per  cent  of  th©  net  earnings 


lAILWA'f  MATERIALS,,  .BQITIPMENT,  AWD  SUPPLIES. 

«fter  payBient  of  opemtiiiof  expeftsus  and,  a,H  income  charg'es.  The 
Spaiiish-iimerican  war  first  delayed  act,ion  on  this  project;  next  t!io 
,l2iiipres8  Dow.ager,  m  control  at  ,Pel£.i„ng,  apparently  put  obstructions 
Ml  the  way  of  progress;  but  in  the  coiiree  of  tim,0  sui-vevs  were  made, 
,foll,owed,  by  80:in,e  construction  wo,rk,,  which  ultimately  resulted  in 
the  conip,letion  of  the  Canton-Samshui  and  the  Chuchow-Ping- 
hsiang  ,s.ect,ion,8,  now  operatwi  by  the  Ministry  of  CommunicatioiS., 
and  the  .Kwangtung  Yuoh-Han  Railwa}^  as  already  mentioned.  "■' 
^^^  Tlie  death  of  Senator  Brice  removed  the  chief  personal  force  of 
tliia  'enterprise  and  later  :resulted  in  Belgiaji  inte'reste'  getting  mar- 
j,o.rity  control  of  the  development  company,  though  it  wta.  against 
tlie  spirit  (and  probably  the  actual  terms)  of  the  .agreement  to  "allow 
tlie  natioiiality  of  the  control  to  change.  ,Aft«r  considerable  agit,a- 
tJon  and  insistence  on  the  part  of  the  Chinese,,  ,A,merican  interests 
again  obtained,  control  of  the  Developm,eut  C#.:  but  the  Chinese 
authorities  wero'  not  satialied  to  .allow  the  work  to  proceed  and  th,e 
American  int«rests  were  not  energetic  in  pushi^ng  the  matter,  with 
the  result  that  the  project  was  taken  over  by  the  Chinese  Govern- 
ment and  the  transaction  with  the  ,A,merican-Chinese  Development 
Co.  was  .i,n,al,ly  co,n.clude«:i  in  1905  by  the  paymei,»t  of  I6>750,()00 
(gold)  for  title  to  all  the  work  done  and  the  profits  mnd  good  will  of 
the  entire  enterprise. 

It  was  irst  attempted  to  raise  thwe  funds  iim,ong  the  Chinese 
gentry  and  the  interests  in  .South  €M,na  that  had  so  constantly 
.opfioaed,  the  construction  of  this  Line  by  the  Am,erican-Chinese  Devet- 
.opmeiiit  Co.,  but  w,hen  the  time  actually  came  to  subscribe,  the 
funds^  were  not  forthcoming,,  and  the  above  amount  wma.  'iniilly  ob.- 
taincxl  from  tlie  government  of  the  Britisli,  colony  of  Hongkong 
and  ^thtis  became  a  British  lo.an.  It  wis  coii,'tiNii,p|iiated,  after  the 
eluiimation  oi  the  A,m«i.can.-€hine8©  Deveiopaoiii  Co.,  that  the 
Cli,.ii:i,ese^  should  take  the  work  in  hand  and  com,pIete  this  line  from 
native  resources,  liMt  conditions  finallv  led  to  the  Hukuang  Railway 
lo.im„  thetlownfall  of  the ,M,iinchu  dynasty,,  and  ,M,r.  Sheng's  dismissal, 

ihe  Hukuang  Eailw.ay  ,loan  airreement  luis  already  been  men- 
tioned, .as  has  the  ooinbining  of  the  funds  from,  the  Amei-ican  and 
B^ritish  ,loaiis  ,to  ^(jom,p,leto  the  Wuc,l,iang-Ch.a.n,gBha  section,  which 
has  Recently  been  nut  in  service  but  which  h«^s  exhausted  all '  the 
,ava,i,|ft,ble  funda..  The  question  of  additional  funds  to  complete  th,is 
important  tra.nk  line  will  doubtless  come  up  in  the  com-se  of  a  short 
'time. 

The  faittre  of  the  Am,erican.-Ch,inese  Development  Co,  to  complete 

this  project  m-as  no  doubt  a  re,al  mkfortune  from,  the  standpoint  of 
Cfimese  interest  and  voiy  regrettable  from  the  American  point  of 
view. 

The  Chuchow-Pinghsiang  branch  was  surveyed  by  the  American 
engineers.,  althouffh  th,is  branch  line  was  not  included  in  the  orit'inal 
»gre.ement  with  the  American-Chinese  Development  Co.  Work  was 
started  ,in  1899  for  the  specific  purpose  of  completing  this  line  for  the 
transportation  of  coal  from  the  Anyuen  coal  mines  at  Pinghsiang  to 
'Chnchow,  to  be  taken  from  there^  by  water  to  the  Han-Yeli-Piu'tr  Iron 
Wo,rk8  at  Hankow.  Although  the  constniction  was  rather  difiiciilt, 
the  cost,  accordi,ng  to'  Mr.  Kyle's  B.tiidy,  totals  a  little  less  than 


.CHmA. 


111 


Work  on  the  Canton-Samshui  line  was  started  in  the  latfcr  part 
of  1902.  The  hrst  section  to  Fatshan,  which  is  double  track,  was 
completed  and  i)ut  in  service  before  the  end  of  1903,  and  the  entire 
lino,  the  remamder  of  which  is  sinirle  track,  was  completed  and  put 
m  service  SoDtember,  1905.  The  const,nict,ion  cost  of  this  line, 
arconimg  to  Mr  Kyle's  study,  is  about  $107,500  per  mile.  The 
lnK>  ruas  through  a  verv  densely  populated  district  and  has  been 
|>rohtahle  on  account  of  the  large  passenger  busmess  can-ied  ever 
snn-e  the  completion  of  the  Hne,  although  the  freight  business  u 
ne«j:Iigible.  A  connection  from  thk  hne  at  Fatshan  to  Kono^moon  a 
di  taiice  of  about  40  miles,  to  connect  with  the  Sunning  (privately 
owned)  radway  has  been  discussed,  but  at  present  nothing  tanijible 
^'\pIl^^^*^**^"*'  towaid  its  actual  construction. 

The  Kwangtung  section,  extending  from  Canton  to  the  Kwangtung- 
Hunan  border,  a  distance  of  about  zlO  miles,  was  taken  in  hand  V)v 
the  Kwan^tung  mercantOe  administration  of  the  Yueh-Han  Rail- 
way,  a  Chmese  company  with  a  nominal  capital  of  S4,000,000,  of 
which  only  a  portion  was  paid  up.  This  took  place  after  the  Amei  i- 
can-Chmecje  Development  Co.  interests  had  been  bought  out  and 
taken  over  by  the  Chinese  Grovernment. 

This  Chinee  company  is  now  known  as  the  Kwangtung  Yueh- 
Man  t.0.  (Ltd.).  The  line  from  Kwangtung  to  Shiuchow,  a  'distance 
of  about  140  miles,  has  been  put  in  service  and  surveys  have  been 
niade  for  the  reniaming  section  of  about  70  miles.  The  construction 
Of  this  latter  will  be  rather  difficult  and  expensive,  because  of  the 
fact  that  the  hne  runs  thfi;n:^h  very  rough  country,  where  about  60 
tunnels  with  a  total  lengtli  of  10,000  feet  will  be  lequired,  as  well  as 
some  rather  expensive  bridge  work. 

SOURCE  Of  CAPITAL  AND  PRESENT  CONTROL. 

Th^  writer  was  unable  to  obtain  information  that  would  make 
possible  an  understanding  of  the  general  balance  sheets  of  the  Canton- 
tianlsow  svstem  as  a  whole  or  even  in  part.  The  Chinese  Govern- 
ment Railways  consolidated  report  shows  no  interest  changes  for 
the  thuchow-Pinghsiang  and  Canton-Samshui  sections,  leading  to 
the  conclusion  that  these  lines  are  now  coming  entuely  under  the 
head  of  permanent  Chinese  Government  investments—the  invest- 
ment assets  being  S4,750,00O  and  $16,750,000,  respectively.  The 
Kwangtuiig  lueh-Han  RaQway  Co.  (Ltd.)  seems  to  cany  the  oblio'a- 
tion  of  the  loan  from  the  Hongkong  government  for  £1,150,000 
which  bears  interest  at  4J  per  cent  and  the  proceeds  of  which  were 


"-  — ^x.5...ic.  ....  ffux^iiau^  L>  tuvereu  oy  me  Mukuang 

Itiulway  loans,  a^  ah-eady  explamed,  but  the  writer  was  unable  tS 
Ob  tarn  the^  details  of  these  amounts  or  their  allocation  to  the  different 
sections  of  the  Hukuang  railways,  if  theie  is  such  an  assignment  of 
these  expenditures. 

CLASS  OF  TRAFFIC. 

The  Wuchang-Changsha  section  has  not  been  in  service  long 
enough  for  one  to  arrive  at  any  conclusion  as  to  the  traffic  that  will 
develoix  However  in  view  of  the  fact  that  about  85  per  cent  of 
tlie  trathc  on  the  Chuchow-Pmghsiang  consisted  of  mmeral  products 


112 


lAILWAY  MATEB,IALS,  WJUIPMENT,  A1?D'  S'UPPLIBS. 


CHINA. 


(noftrl?  ai  coal),  it  is  probable  that,  notwitbstandinff  water  compe- 
tilbn  from  OiBchow  and  Changsba,  considerable  through^coal  traffic 

will  develop,  particularly  during  the  diy  season  wben  water  tram- 
portation  is  at  times  s'uspended. 

Traffic  on  the  Canton-Samsbui  line  is  almost  entirely  passenger 
business  and,  on  account  of  the  dense  population  in  tliis  section, 
this  wi'll  no  doubt  continue  to  constitute  the  largest  pait  of  the 
busineas.  The  results  from  this  line  seem  to  justify  the  suggmtfon 
miide  later  concerning  the  construction  of  electric  lines  in  this  and 
similar  districts  of  Cfliina  for  the  handling  of  passenger  and  light 
goods  busineiM-  by  electric  railways,  as  has  been 'done  in  Japan,  par- 
ticularly in  the  Osaka  indrntrial  aistrict.  The  traffic  on  the  Sunmng 
Railway,  a  private  corporation  in  the  same  di:=i trie t  (see  p.  119),  affords 
further  evidence  in  support  of  thk  suggestion, 

WWBfT  ■AIMING  CAFACITt  AMU  OUTLOOS  TOl  FtJTUlB. 

The  Chuchow-Pinghsiang  section  has  shown  a  sm,ail  net  pi-ofit  for 

feveral  years,  hut  it  is  doubtful  whether  this  will  be  the  c^ase  with 
the  line  no'w  from  Wuchan.g  to  Pinghsiang,  even  including  the  trajfiac 
tO'  the  imnortant  intermediata  cent«re  of  Changsha  and  Yochow, 
bo'th  of  wnich  have  water  transportation  facilities. 

The  Canton-Samshui  has  shown  very  satisfactory  piofitB  for  several 
years,  but  it  is  not  probable  that  thme  will  be  materially  increased 
until  extensions  are  made  to^  draw  moie  traffic  over  this  line  and  also 
to  develop  freight  traffic.  The  proposed  connection  with  the  Sun- 
ning 'Railway  would  doubtless  benefit  both  lines. 

There  aie  no  published  leports  O'f  the  Kwangtung  Railway  and 
it  is  impossible  to  obtain  reliable  data,  but  it  is  understood  that  this 
line  shows  no  profit  and  probably  will  not  do  so  until  the  main  trunk 
line  is  completed  and  both  through  and  local  traffic  developed. 

As  regards  the  prospective  caininff  capacity  of  this  system  .as  a 
whole,  it  is  very  likely,  on  account  of  the  high  costs  up  to  tlie  present 
time  and  the  probable  heavy  expense  for  completion,  that  the  system 
will  not  show  any  profits  "for  several  years  until  the  tlirough  and 
local  business  has  expanded — especially  the  coal  traffic  that  may 
be  expected  to  develop  from  the  Finglidang  fields  to  Canton  and 
through  that^  port  to  the  other  markets,  of  South  China,  Indo-China, 
the  East  Indies,  and  the  Philippine  Islands. 

IIOAPWAY  AND  TBACK  MATEKIALS. 

A  clear  statement  of  the  materials  used  in  these  lines'  thus  far  is  a 
rather  difficult  matter,  on  account  of  the  length  of  time  invoked  and 
the  changes  of  engi.neers  during  this  interval.  The  materials  used 
on  the  new  line  from  Wuchang  to  Changsha  have  conformed,  in 
.general,  to  British  standards  and  practice,  preference  being  given  to 
Chinese  sources^  and  next  to  British  manufacturers,  although  a  good 
many  of  these  articles  have  come  from  America.  The  bridges  on 
this  hne  are  largely  from  American  concerns,  although  there  was 
considerable  controversy  over  the  specifications,  finally  resulting  in 
the  recall  of  the  first  specifications  and  the  sending  out  of  invitations 
for  second  tenders.  'Tlie  specifications  were  reduced  from  Cooper 
'E-45  to  Cooper  E-40,  although  the  increase  in  the  price  of  steel  in  the 


meantime  resulted  in  a  substantially  higher  price  for  the  lighter 

bridges. 

The  Chuchow-Pinghsiang  was  built  mostly  with  American  mate- 
rials, but  under  the  direction  of  a  German  engineer  in  charge  of  the 
coal  mines  who  also  had  charge  of  this  hne.  Most  of  the  renewals 
have  been  made  with  German  materials. 

The  Canton-Samshui  line  was  also  constructed  mostly  with  Ameri- 
can materials,  but  a  variety  of  materials  have  been  used  in  the 
renewals.  The  rail  is  75  pounds,  American  Society  of  Civil  Engineers 
section,  of  American  manufacture.  The  double-track  section  is  now 
laid  with  steel  ties  of  the  same  design  as  those  mentioned  later  in 
connection  with  the  Yunnan  line  (see  p.  129  and  figs.  14  and  15). 
These  came  from  France  or  Belgium.  White  ants  are  very  destruc- 
tive to  wooden  ties  in  this  part  of  China,  eating  all  kinds  of  ordinary 
timber.  It  is  said  that  they  do  not  attack  creosoted  timber,  and 
about  80  per  cent  of  this  line  is  now  laid  with  creosoted  Oregon  pine 
ties,  which,  it  is  stated,  have  a  life  of  from  seven  to  eight  years. 

The  roadway  and  track  materials  for  the  Kwangtung  line  that  are 
not  of  Chinese  manufacture  came  from  American  sources.  The  rail 
and  fastenings  were  furnished  from  the  Han-Yeh-Ping  Works. 

ROLLIMG  STOCK. 

As  with  the  roadway  and  track  materials,  it  is  rather  difficult  to 
cover  by  a  clear  statement  the  situation  with  regard  to  rolHng  stock 
on  these  lines. 

Tlie  equipment  on  the  Wuchang  section  conforms,  in  general,  to 
British  specifications  and  practices,  and,  although  the  last  locomo- 
tives bought  were  of  American  manufacture,  they  were  built  to  meet 
British  specifications.  This  point  gave  rise  to  much  controversy 
as  to  the  interpretation  of  the  terms  of  the  loan  agreement;  the  matter 
should  be  fully  clarified  in  the  making  of  any  future  joint  loans. 

The  original  equipment  of  the  Pinghsiang  section  was  practically 
all  of  American  manufacture  and,  as  in  the  case  of  the  road  and 
track  material,  the  German  engineer  in  charge  of  the  mines  and  of 
this  hne  has  largely  substituted  equipment  of  German  manufacture. 

The  equipment  on  the  Samshui  line  is  mostly  of  ximerican  manu- 
facture. The  first  three  engines  were  small  secondhand  loco  notives 
formerly  used  on  the  Manhattan  Elevated  Railways  in  New  York. 
These  are  still  in  service.  This  hne  at  present  has  6  large  and  3  small 
locomotives,  33  passenger  cars,  29  freight  cars,  and  3  service  cars. 

Iho  Kwangtung  hne  has  21  locomotives,  35  passenger  cars,  and 
195  freight  cars.  Fifty-nine  of  the  freight  cars  came  from  the 
rongshan  shops  of  the  Peking-Mukden  Railway,  and  most  of  the 
other  equipment  is  of  ^imerican  manufacture,  particularly  the  loco- 
motives. A  good  many  of  the  freight  cars  were  originally  used  for 
construction  and  the  handhng  of  ballast  but  are  now  being  employed 
for  commercial  traffic. 

WORKSHOPS. 

The  new  section  of  this  line  has  complete  and  up-to-date  shops  at 
Wuchang,  which  are  capable  of  handhng  all  classes  of  repair  work 
for  the  264  miles  of  line,  although  the  old  shops  of  the  Pinghsiang 
section  will  probably  be  continued  in  service. 

10(1229*'— 19 8 


HATIjWAY   M'ATBHIALS.    'EOUIPMEXT.    ANB   SUPPJiIlS. 


Tlie  sbops  of  tli0  Samsliui  seciion  are  siimll  and  have  relatively 

little  equipnieiit,  l)iit  they  seem  to  be  capable  of  haedling  the  repaira 
for  this 'short  line. 

The  Kwangtung  Hne  hm  siii,a1I  sbops  in  temporary  build iiiga  near 

Canton,  bu.t  tliwe  are  less  capable  than,  the  Samshui  shops  of  handling 


classes  of  repair  work  necessary  for  the  maintenance  of  the 
C(iuipm.ent. 

OBGANBATIflN'  ANB  PEBSOMMBL. 

The  Wuchang  section  is  under  the  general  supervision  of  tb.e 

director  general  of  the  Hukuang  Railwin^,  Br.  Jeme  Tieii-Yow,  tho 
well-known  Chinese  civil  engin^c^r,  whose  licadquartere  are  at  I lan- 

kow\  The  administration  of  this  section,  is  in  the  hands  of  a  managing 
d:irector  located  at  Wuchang,  and  the  present  technical  staff  is  largely 
B'ritish,  in  accord  an  re  with  the  terms  of  the  loan.  The  fonncr  sta,ff 
of  Irhe  Pinghsiang^section  lias  been  merged  with  this  ■stall  and  the 
separate  organi,zatiou  digcon tinned. 

There  is  a  managing  director  and  a  small  staff  of  Chinese  for  the 
Canton-Samshui  line,  with  headquarters  at  Canton.  There  is  also  a 
director,  a  sm,all  staff  of  Clii,nese,'  and  an  American  advisory  engincei- 
for  t:.lie  kwa,ngtung  line,  with  headquarters  at  Canton.  For  directo- 
,rics  of  the  officials  of  these  lines,,  see'  pages  265  and  260. 

FUBCSASB  OP  STOBBS. 

The  purcbas-es  for  the  Wuchang  section  are  handled  by  the  chief 
storekeeper  (British),  who  is  located  at  Wuchang.  The  purchases 
of  material  for  the  cons  tract!  on,  of  this  Hno  were  made  under  the 
terms  of  the  Hukuang  Railway  loan,  agreement,  concerning  which 
there  has  been  considerable  controversy  as  already  m,entioned.  It 
,18  probable  that  there  will  be  a  continuance  of  the  preference  given 
to  materials  of  British,  origin,  after  those  from  CHnese  sources. 

Chief  En-incer  Johnson  (Chinese)  of  the  Samsbui  line  has  cbaree 
of  technical  niattere  and  recommends  purchases,  which  are  made 
through  tlie  managing  director  of  this  line,  ,Iocated  at  Canton. 

On  the  ,Kwan-tiInc^ine  the  director,  Mr.  K.  H.  An,  appears  to  have 
full  authority  in  the  matter  of  purchtees.  Mr.  I).  S.  William,3 
(American)  acts  in  an  advisorj^  capacity  in  this  connection. 

CANTON-KOWLOOM  (Cmil-K'IIANG)  MAIiWAY  (CHINESE  SECTION). 

LOCATION  AN'P  EH^ENT. 

Tins  is  the  line  between  Canton  and  the  British  colony  of  Hong- 
kong and  ,is  in  two  sectio,ns.  The  Britisli  section  starts  at  Kowlooii, 
opi)Osite  the  city  of  Victoria  on  the  ,isla.nd  of  Hongkong  (there  is  a 
ferry  connection  between  thc^o  cities),  and  runs  through  the  leased 
territory  of  Kowloon  to  Samchun,  a  distance  of  22  miles. 

The  Chinese  section  starts  at  S,amch,u,n  and  runs  to  the  southeastern 
part  of  the  Chinese  city  of  Canton,  a  distance  of  89  miles,  making 
a  total  of  111  miles  from,  ,Kowl0on  to  C?anton.  ,A,  line  around  tho 
city  of  Canton  has  been  suggested  in  connection  with  the  Kwan|;tung 
,line,  but  no  aC'tion  has  been  taken  towtf  d  the  actual  construction  of 
this  li&k. 


Im/JlxX  JN  jELa 


mSTOBICAL  SUKVEl. 


115 

niB.  imLi  lUP' 


Tlie  island  of  Hongkong,  by  concession  on  the  part  of  Cliina, 
became  a  British  Crown  colony  in  1843.  A  perpetual  lease  for  a 
small  area  on  the  mainland  at  Kowloon  was  made  in  1858  and  waa 
confirmed  by  the  Imperial  Chinese  Government  in  1860.  In  1898 
the  agreement  for  the  present  leased  territory  was  signed,  this  lease 
providing  for  British  jurisdiction  over  this  territorv  for  a  term  of 
99  years.  Hongkong  has  an  excellent  harbor  and  is  one  of  the  largest 
transshipping  ports  of  the  Far  East  -in  fact,  one  of  the  largest  in  the 
world. 

The  preliminary  agreement  for  the  Canton-Kowloon  Kailwav  waa 
^}S^^^  in  1898.  No  progress  was  made  in  the  constniction  of  this 
bne  for  several  years,  until  the  Britisli  interests  in  Hongkong  in  1905, 
realizing  that  the  prospective  completion  of  the  Canton-Hankow 
Kaihvay  and  the  possible  provision  of  deep-water  harbor  facilities 
near  C  anton  might  affect  very  adversely  Hongkong's  strong  shipping 
position,  took  vigorous  action  to  force  the  building  of  the  present 
line  by  the  British  &  Chinese  Corporation,  with  the  result  that  in 
March,  1907,  the  final  agreement  was  signed  for  the  construction  of 
the  Chmese  section  by  loans  of  £1,500,000,  issued  at  94,  bearing  5 
per  cent  interest,  the  total  life  of  the  loan  to  be  30  years.  Amortiza- 
tion is  to  begin  at  the  end  of  121  years  from  the  date  of  the  loan  and 
to  bo  completed  at  the  end  of  the  30  vears  by  the  payment  of  equal 
amounts  annually.  The  loan  can  be  redeemed  at  102  from  the  end 
of  the  12|  years  to  the  end  of  the  twenty-fifth  year,  and  for  the  re- 
mainder  of  the  life  of  the  loan  at  par.  In  this  instance  the  corpora- 
tion received  a  lump  sum  of  £35,000  for  handling  the  purchase  of 
the  construction  materials  and  equipment  instead^  of  the  usual  per- 
centage commission. . 

The  line  was  completed  in  October,  191 1.  The  agreement  provides 
for  a  British  engineer-in-ehief  and  a  British  chief  accountant  The 
t^rms  of  this  agreement  represent  what  British  interests  have  con- 
tended should  be  the  form  of  contract  to  safeguard  loan  funds  in  the 
building  of  Chmese  railways,  and  this  form  of  agreement  has  become 
known  as  the  ''Canton-Kowloon  type." 

The  cost  of  this  line,  according  to  Mr,  Kyle's  study,  is  more  than 
$188,000  per  mile,  roughly  divided  as  follows:  Interest  charges 
during  construction,  $37,000;  general  charges,  $17,700;  land. 
$19,000;  grading,  $21,000;  bridges,  $25,750;  track,  $30,900 ;  stations 
^l^o^o^'.*?^'  S9,800;  rolling  stock,  $14,200.  The  total  is  about 
^"^^'00"  higher  than  that  for  any  other  Chinese  Government  railway. 

I  Ins  line,  bke  the  Shanghai-Nanking,  competes  with  water  trans- 
portation. Neither  of  these  lines  has  been  profitable,  and,  even 
with  the  lowest  freight  rates  in  China,  they  have  to  depend  ahnost 
entirely  on  passenger  business  for  their  earnings. 

The  capital  for  the  Canton-Kowloon  KaUway  was  entirely  from 
British  sources,  and  it  is  under  British  control  at  the  present  time, 
the  terms  of  the  agreement  being  still  in  full  force. 

OPERATING  EEVENUES  AND  EXPENSES. 

About  90  per  cent  of  the  earnings  of  this  line  are  from  passenger 
traffic,  and  practically  aU  of  the  freiglit  traffic  is  handled  with  mixed 
trains. 

The  operating  revenues  in  1916  were  $794,223  and  the  operating 
expenses  $829,663,  giving  an  actual  operating  loss  of  $35,550,  which, 


Ho 


BAILWAY   MATERIALS,    EQXnPMENT,    AND    SUPPLIES. 


with  interest  charges  of  $701,747  and  other  income  charges,  made  a 
net  deficit  of  $787,009  for  the  year.  This  line  has  been  operated  at 
a  loss  since  it  was  first  opened_,  and  is  probably  the  only  line  of  the 
presenrt  Chinese  Government  Kailways  under  the  actual  control  of 
the  Ministry  of  Communications  that  will  not  show  a  profit  for  a  long 
time,  if  ever. 

HOADWAY  AMD'  TKACK  1CATERIAI«S*— ^ROLLING  STOCK* 

Tlie  construction  of  this  line,  with  the  exception  of  the  rail,  was 
with  British  materials,  and,  as  a  rale,  British  practice  has  prevailed 
in  the  case  of  all  maintenance  and  renewal  materials.  The  rail  is 
85-pound  Chinese  standard  section  from  the  Han-Yeh-Ping  Works. 
Most  of  the  ties  are  Australian  hardwoods.  There  are  46  steel 
bridges  and  39  arches  on  this  section. 

The  rolling  stock  is  of  British  design  and  manufacture,  except 
certain  of  the  freight-car  bodies,  part  of  which  came  from  the  Tang- 
shan  shops  and  part  from  the  Whampoa  Dock  Co.  at  Hongkong.  The 
equipment  of  the  line  consists  of  14  locomotives,  41  passenger  cars, 
and  67  goods  wagons. 

OICAKIIATION— PURCHASE  OF  STORES. 

/■ 

There  is  a  managing  director  (Chinese)  in  charge  of  this  line,  with 
a  small  staff.  The  position  of  engineer-in-chief  is  filled  by  a  British 
eijgioeer,  as  provided  by  the  agreement.  The  directory  of  these 
officials  is  given  on  page  267. 

Preference  is  given  to  British  materials,  after  those  from  Chinese 
sources. 

CANTON-KOWLdON  MAILWAY  (BRITISH  SECTION). 

The  main  line  of  this  railway  is  fully  covered  in  the  description  of 
the  Chinese  section.  In  addition,  there  is  a  fine  of  2-foot  gauge  from 
Fanling  to  Shatowkok  and  Mirs  Bay,  a  distance  of  about  8  miles. 

HISTORICAL  SURVEY. 

This  line  was  constracted  by  the  government  of  the  British  colony 
of  Hongkong  with  the  definite*  object  of  protecting  the  large  shipping 
iotcrests  of  this  excellent  port.  The  work  was  begun  in  1905  and 
completed  about  the  same  time  that  the  Chinese  section  was  finished 
in  1911.  This  line  being  entirely  id  the  Kowloon  leased  territory, 
no  loan  agreement  was  made  with  the  Chinese  Government,  and  the 
funds  were  supplied  entirely  bv  the  government  of  the  colony  of 
Hongkong.  The  fine,  ranning  through  rough  country,  was  expensive 
to  construct,  particularly  in  view  of  the  high  standard  of  the  work. 
The  total  capital  expenditure  to  the  end  of  1916  was  about  $14,500,000 
Hongkong  currency,  not  including  about  $90,000  Hongkong  cur- 
rency for  the  construction  of  the  Fanling  branch.  A  considerable 
amount  of  reclamation  has  been  done  around  the  Kowloon  terminal, 
and  in  1916  a  verv  substantial  and  ornate  passenger  station  was 
built  at  Kowloon— 'both  included  in  the  above  expenditure. 

The  remarks  regarding  the  class  of  traffic  on  the  Chinese  section 
apply  in  all  particulars  to  the  British  section.  Tlirough  ^ervice  is 
maintained  between  Kowloon  and  Canton  over  the  two  sections. 


Special  Agents  Series  No.  180. 


FIG  26.— TYPE  OF  BOX  CAR   USED  ON  THE  CHINESE  GOVERNMENT   RAILWAYS. 


FIG.  27.— TYPE  OF  TANK  CAR  FOR  HANDLING  REFINED  PETROLEUIVl  PRODUCTS 

ON  THE  CHINESE  GOVERNMENT   RAILWAYS. 


INTENTIONAL  SECOND  EXPOSURE 


116 


RAILWAY   MATERIALS,    EQUIPIVIEXT,    AND    SUPPLIES. 


with  iiitorest  charges  of  $701,747  and  other  income  charges,  made  a 
net  deficit  of  $787,009  for  the  year.  This  line  has  been  operated  at 
a  loss  since  it  was  first  opened,  and  is  probably  the  only  line  of  the 
present  Chinese  Government  Railways  under  the  actual  control  of 
ttie  ^linistry  of  Communications  that  will  not  show  a  profit  for  a  long 
time,  if  ever. 

BOADWA¥  AND  TRACK  MATERIALS— ROLLINC3  STOCK. 

Tlie  construction  of  this  line,  witli  the  exception  of  the  rail,  was 
with  British  materials,  and,  as  a  rule,  Britisli  practice  has  prevailed 
in  tlie  case  of  all  maintenance  and  renewal  materials.  The  rail  is 
85-pound  Chinese  s  tan  (bird  section  from  the  Uan-Yeh-Ping  Works. 
Most  of  the  ties  are  Australian  hardwoods.  There  are  46  steel 
bridges  and  39  arclies  on  this  section. 

The  rolling  stock  is  of  British  desiLni  and  manufacture,  except 
certain  of  the  freight-car  bodies,  part  of  which  came  from  the  TAng- 
slian  shops  and  part  from  the  Wiampoa  Dock  Co.  at  Hongkong.  The 
equipment  of  the  line  consists  of  14  locomotives,  41  passenger  cars, 
and  67  goods  wagons. 

ORGANIZATION-PURCHASE  OF  STORES. 

There  is  a  managing  director  (Chinese)  in  charge  of  this  line,  with 
a  small  staff.  The  position  of  engineer-in-cliief  is  filled  by  a  British 
engineer,  as  provided  by  the  agreement.  The  directory  of  these 
oilicials  is  given  on  page  267. 

Preference  is  given  to  British  materials,  after  those  from  Chinese 
sources. 

CANTON-KOWLOON  RAILWAY  (BRITISH  SECTION). 

The  main  line  of  this  railway  is  fully  covered  in  the  description  of 
the  Chinese  section.  In  addition,  tliere  is  a  line  of  2-foot  gauge  from 
Fanling  to  Shatowkok  and  Mirs  Bay,  a  distance  of  about  8  miles. 

HISTORICAL  SURVEY. 

This  line  was  constructed  by  the  government  of  the  British  colony 
of  Hongkong  with  the  definite'  object  of  protecting  the  large  shipping 
interests  of  this  excellent  port.  The  work  was  begun  in  1905  and 
completed  about  the  same  time  that  the  Chinese  section  was  finished 
in  1911.  This  line  being  entirely  iri  the  Kowloon  leased  territory, 
no  loan  agreement  was  made  witli  tlie  Chinese  Government,  and  the 
funds  were  supplied  entirely  by  the  government  of  the  colony  of 
Hongkong.  Tlie  line,  running  througli  rough  country,  was  expensive 
to  construct,  particularly  in  view  of  the  higli  standard  of  the  work. 
The  total  capital  expenditure  to  the  end  of  1916  was  about  S  14,500,000 
Hongkong  currency,  not  including  about  $90,000  Hongkong  cur- 
rency for  the  construction  of  the  Fanling  branch.  A  considerable 
amount  of  reclamation  has  been  done  around  the  Kowloon  terminal, 
and  in  1916  a  very  substantial  and  ornate  passenger  station  was 
built  at  Kowloon— ijoth  included  in  the  above  expenditure. 

Tlie  remarks  regarding  the  class  of  traffic  on  tlie  Chinese  section 
apply  in  all  particulars  to  the  British  section.  Through  s^ervice  is 
maintained  between  Kowloon  and  Canton  over  the  two  sections. 


Special  Agents  Series  No.  180. 


FIG  26.— TYPE  OF  BOX  CAR   USED   ON   THE  CHINESE  GOVERNMENT   RAILWAYS. 


FIG.  27.— TYPE  OF  TANK  CAR  FOR  HANDLING   REFINED  PETROLEUM  PRODUCTS 

ON  THE  CHINESE  GOVERNMENT   RAILWAYS. 


CHINA. 


117 


EARNING  CAPACITY. 

Operating  revenues  in  1916  were  S366,216  and  operating  expenses 
$296,692,  leaving  a  balance  to  net  operating  income  ol  $69,624, 
which  would  fall  far  short  of  paying  interest  charges  on  the  capital 
expenditure  for  this  line.  The  net  operating  revenue  for  the  year 
1915  was  $46,500,  making  a  still  poorer  showing. 

ROADWAY  AND  TRACK  MATERIALS— ROLLING  STOCK— WORKSHOPS. 

The  construction  of  this  section  was  rather  difficult.  There  are 
five  tunnels;  the  longest  is  7,256  feet,  but  the  others  are  short, 
being  924,  350,  175,  and  150  feet  in  length.  All  the  track  materials 
are  from  British  sources;  the  rail  is  85-pound  British  standard 
section  and  the  ties  ar«  of  Australian  hardwoods. 

The  rolling  stock  is  all  of  British  manufacture  except  one  2-foot- 
gauge  locomotive  of  German  manufacture,  which  was  purchased  in 
connection  with  a  number  of  construction  dump  cars.  The  present 
equipment  consists  of  11  locomotives,  27  passenger  cars,  and  50 
freight  cars  for  4i-foot  gauge,  and  3  locomotives,  6  passenger  cars, 
and  3  goods  wagons  for  2-foot  gauge. 

The  Kowloon  workshop  is  provided  with  shop  facilities  adequate 
for  a  line  of  this  extent  and  any  amount  of  equipment  that  it  may 
be  expected  to  have  in  the  future. 

ADMINISTRATION  AND  PURCHASE  OF  STORES. 

The  line  is  under  the  administration  of  a  managing  director  and 
a  small  staff,  all  British. 

British  materials  are  naturally  given  preference,  though  many  of 
the  requirements  are  bought  from  the  various  concerns  in  Hongkong. 

FUKIEN  (CHANG-HSU)  RAILWAY;  CHANGCHOW-AMOY. 

LOCATION  AND  EXTENT. 

This  line  starts  at  Sungsu,  on  the  mainland,  about  3  miles  across 
the  bay  from  the  city  of  Amoy.  The  line  was  projected  to  go  to 
Changchow,  a  distance  of  about  33  miles,  but  construction  was 
stopped  at  Kiangtungkiao,  where  the  line  will  cross  the  Pakkoe 
River.  The  length  of  the  completed  line  is  about  20  miles.  This 
line  is  located  in  the  Province  of  Fukien,  which  is  claimed  by  Japan 
as  one  of  its  "spheres  of  influence" — this  claim  including  the  right  to 
finance  all  railways  for  which  the  Chinese  can  not  raise  money  from 
native  sources. 

HISTORICAL  SURVEY.i 

The  Merchants  Fukien  Railway  Co.  was  organized  in  1905  by 
Mr.  Chen-Pao-chen,  and  it  was  proposed  to  build  lines  from  Amoy 
to  the  Provinces  of  Kiangsi  and  Kwangtung.  The  original  capital 
was  $6,000,000,  in  shares  or  debentures  of  $5,  but  it  is  understood 
that  even  the  subscriptions  received  were  not  paid  in  full.  Many  of 
the  subscribers  were  said  to  be  Chinese  residents  of  the  Straits 
Settlements. 

Surveys  were  made  in  1906  and  construction  work  was  started 
some  time  later,  but  in  1909  all  the  available  funds  were  exhausted 


1  Based  on  Mr.  Hsu's  "Railway  Problems  of  China". 


no 
■  IJP' 


lAILWAY   MATBllIALS,    EQ,Ui:PM,ENT,    AND    SUPFivlBS. 


and  a  loan  of  1500^,000  was  mmile  from  the  Bank  of  Communications, 

whicli  inatitnlion  is  under  tlie  direction  of  the  Ministrv'  of  Commuiii- 
•cationa.  By  1914  only  tli«  present  It'iigtli  of  line  Iiad  l>eeii  con- 
structed ancl  further  subscriptions  from  the  merchants  could  iiot^  t>.' 
secured.  About  this  time  the  project,  in  some  way,  was  transfcrr.^ii 
to  the  Ministry  of  Communications;  the  owners  of  the  (lehent.iJr.M 
made  some  claims  on  account  of  their  in ti^ rest,  but  these  seeni  t.  > 
have  been  disallowed.  Since  that  time  tlie  line  has  been  operaU'.l 
as  one  of  the  Chinese  Goveniinent  Railways,  under  ihv  ('lirecti'»n 
of  the  "Ministry  'Of  Communications.  It  ijs  generally  understoDil 
that  a  Japanese  loan  is  now  held  against  this  line  and  that  any 
further  extensions  will  be  financed  by  the  Japanese. 

OPEHATING  KB¥B.M¥BS.  AMD  EIFENSES— FUTCEl  MOSPSCITS. 

Tliero  seems  to  be  no  funded  debt  on  tliis  line,  but  opc^rating 
revenues  were  insuflieient  to  meet  operating  expenses  for  both  1915 

and  1916,  and  after  the  payment  of  all  inct)me  charges  there  was  a 
deficit  of  more  than  $  150,000 — this  with  less  than  $50,000  operating 
lY venues  for  both  these  years. 

This  line  is  entirely  disconnected  and  many  miles  away  from 
any  of  the  other  Chinese.  Government  Railways,  and  it  is  not  likely 
that  it  will  be  extended  beyond  Changchow  for  some  years,  although 
it  m^as  first  planned  to  build  this  line  to  Cliaocbow,  wliere  it  would 
connect  with  the  privately  owned  line  from,  Swatow  to  Chaocliowfu, 
which  project,  in  turn,  may  be  extended  to  connect  with  the  Canton- 
Kowloon  at  Sliikling,  near  the  Canton  end  of  this  latter  line.  Tlio 
building  of  these  extensions  is  probably  remotFC,  espt^cially  as  they 
are  horn  paralleled  by  •oc«.an  trans|Kirtation  lines. 

BOADWAY  AND  TRACK  M ATB8IA.LS~BO'LLIHG  STOCX. 

The  rails  for  this  line  were  furiiislied  from   the   Han-Yeh-Ping 

Works,,  the  ties  were  purchased  from  Japan,,  and  the  bridges  and 
other  track  materials  came  from,  American  sources. 

Of  the  fi,rst  two  locomotives,  one  wiis  of  ,A,merican  manufacture 
and  the  other  German.  The  re,niiii.nder  of  the  rolhng  stock  is  largely 
of  Americ.an  manufacture. 

/ 

The  ad,ministration  of  this  li,ne  at  present  is  under  a  managing 
director,  ,Mr.  Wang  Ch,ing  Hsien,  with  ,headquartera  at  Amoy/    A 

very  small  Chinese  sta,ff  is  employed  in  the  maintiMiance  and  o|H^r;t- 
tion  of'  the  line.    All  purchases  are  made  under  the  direction  of 

the  manasins  director. 


V,  CHINESE  PRIVATE  RAILWAYS/ 

SUNNING  (HSINNING)  RAILWAY. 

LOCATION  AND  EirTENT. 

This  line,  which  is  very  frequently  spoken  of  by  foreigners  as  the 
Msummg  Kailway  (its  Chmese  name) ,  runs  through  the  Province  of 
^wangtung  from  Kongmoon  to  the  harbor  of  Samkaphoi,  a  short 
distance  southwest  of  the  Portuguese  settlement  of  Macao  The 
length  of  the  line  is  about  67  miles,  and  it  is  stated  that  a  population 
of  consider  ably  more  than  one  million  people  is  now  served  directly 
by  tins  line.  Sunning  and  Kungyi  are  two  of  the  larger  towns 
served  in  this  densely  populated  district. 

Some  extensions  are  contemplated,  one  of  which  has  alreadv 
horn  mentioned  in  connection  with  the  Samshui  line-to  extend 
from  l^atslian  to  Kongmoon,  a  distance  of  something  more  than 
40  miles  It  would  seem  that  a  system  combining  the  Sunnin<^ 
Kailway,  the  Samshui  line  and  the  contemplated  extensions  mi^ht 
be  electnfied  and  be  made  to  yield  unusually  good  returns,  like 
the  electric  lines  in  the  Osaka  industrial  district  of  Japan  Thia 
suggestion  will  be  referred  to  later  (see  p.  252). 

HISTORICAL  SUKVEY. 

This  railway  is  the  only  real  example  of  private  railway  mier- 
prise  m  Chma  depending  on  the  individual  initiative  of  one  man 
rbin  rl  tL  tr  f^^^^%^'  constructed    and  operated  by  Mr.  Hee 
Chm-Gee  who  was  formerly  a  resident  of  Seattle,  Wa^h..  worked  on 
the  Great  Northern   Railway,  returned   to  China  some  yeai^  ago 

aui  i'^n':^^  f'''''''^  '^  ^'^  '^'  '^  '^'  P^^i^^*'  althougl/h^'E.  n^^ 
qinte  an  ckicrly  man. 

The  lirat  section  built,  from  Kungyi  to  Sunning,  a  distance  of 
15  miles,  was  opened  m  January,  1908,  and  since  that  time  extensions 
have  been  added  from  Kunpi  to  Kongmoon  and  frorSu^kTrto 
ftamkaphoi,  making  a  total  mileage  of  something  more  than  67 
miles.  Ihe  original  Sunning  company  had  a  capital  of  $2,660,000 • 
oaL  fToi  rw''""'^^  k"  ^f '^^^«'12*>^«^which  $f,000,000  r;pre;ents 
rfl  lo    ^     w^^^  merchants,  particularly  from  Mr.  Hee's  Hongkong 

mrt  of  H^lnt^f  .no  mn  ^^f  1^!  P.'^'J^^^  ??^  represents  an  iSvest" 
He  aki  t^Zl  t^'^^^^000  and  that  the  road  has,  in  general,  paid  well. 

f?l!lK  f''^''''t  ''''^^'^  l'^  ^^^*  $3,000,000  Mex.  in  making  exten- 
sions  that  would  not  only  pay  well  themselves,  but  would  also  make 
ttie  existmg  hue  show  increased  earnings.  This  hne  is  characterize*! 
boliof!.''!'?.!,^"  A^^""''^^  ^^^^  ^f'^  designed  to  conform  to  Chinese 
one  lesult  being  some  rather  sharp  curvatures  in  the  alignment. 

HaSl'^SCfy^t^^StLS^  ^  ^'}r^  ^  P^t  of  the  C^Z 

page  43.  -jateai,  anaougn  at  present  it  is  privately  operated  and  is  ao  ahown  in  the  table  »li 

110 


rras 


120'  BAILWAY    MATBKIALS,   EQUIPMENT,    AND    SUPPLIES. 


The  greater  part  of  the  earnings  are  from  passenger  traffic,  bnt 
sufficient  freight  traffic  has  been  aeveloped  to  sliow  the  possibiUty 

of  such  lines  if  the  enterprise  of  private  ownership  is  pnt  behind  the 

development  of  tlie  traffic. 

EOADWAY  AMD  TRACK  MATEEIAIS-IOLLING  STOCK-WOHKSHOPS. 

The  rail  is  mostly  60-poun(L     Some  of  the  firet  came  from  B^elgiiim^ 

and  Gemiany.  In  recent  years  preference  has  been  given  to  Chinese*' 
materiftls,  and  next,  to  those  of  American  m,annfactnre. 

The  present  rolling  stock  consists  of  15  locomotives  (12  American 
and  3  German),  about  50  passenger  cars,  and  about  100  freight  cars. 
These  last  are  largely  of  American  manufacture,  although  equipped 
ivith  side  buffers  anil  the  screw-ball  type  of  couplers.  Two  of  ^  the 
locomotives  were  reeeiit-ly  furnislied  by  one  of  the  large  American 
locomotive  companies.  . 

There  are  smaO  shops  at  Sunning  for  the  making  of  repairs  to  this 

equipment. 

ADM'INISTRATION  AND  PURCHASE  OF  STORIB. 

mil  en 
B  vail . 
Ms  time, 
of  which 


is  president  and  general  manager,  and  the  railway  is 
,  under  his  direction  with  the  assistance  of  a  small  Chinese 
has  an  office  in  Hongkong  where  he  spends  a  portion  of 
Mr.  Hee  gives  his  personal  attention  to  all  purchases,  most 


are  m,ade  when  he  is  in  Hongkong. 

SWATOW-CHAOCHOW  (CHAO-SHAN)  RAILWAY. 

liOCATION  AND  EXTENr. 

This  line  starts  at  a  point  on  one  of  the  branches  of  the  Han  River 
across  from  the  city  of  Swatow,  and  runs  in  a  northerly  direction  to 

Yeekai,  a  distance  *of  about  27  miles.  Yeekai  is  about  3  miles  past 
Chaochow,  a  citv  of  some  400,000  people.  The  population  of  Swatow 
is  estimated  at  about  31,000,  of  whom  several  hundred  are  foreigners. 

HISXORY* 

The  Chaochow  &  Swatow  Railway  Co.  (Ltd.),  a  distinctly  Chinese 

company,  was  organized  about  1903,  when  coiicesaions  were  granted 
to  a  Clmiese  merchant  named  Chang  Yu-nan,  who  had  amassed  a 
fortune  in  Java.  The  compan>  is  registered  under  the  Hongkong 
ordinances  .and  has  a  director  residing  there. 

Construction  work  was  started  in  1904  and  carried  out  under  the 
direction  and  management  of  the  Mitsui  Bussan  Kaisha  (Japanese). 
'The  line  was  completed  in  November,  1906. 

The  business  consists  larcelv  of  passenger  traffic,  and  only  a  small 
amount  of  freight  is  carried.  This  is  largely  on  account  of  the  fact 
that  the  .line  competes  at  all  points  with  the  Han  River  transporta- 

lENING  CAPACrri. 


It  is  stated  that  in,  some  yeare  this  railway  does  not  pay  operatmg 
expenses.  No  dividends  have  ever  been  paid,  and  it  is  not  probable 
that  the  line  will  show  a  profit  untO  extensions  are  built  to  develop 
districts  where  water  competition  will  not  prevail,  particularly  for 
the  haiidUng  of  freight.     It  appears  that  tiiis  is  a  district  where  elec- 


CHINA. 


JL  *mt  JL 


trifled  lines  would  be  much  better  adapted  to  sei-ve  the  traffic,  a  large 
part  of  which,  in  any  event,  would  be  passenger  business. 

EQUIPMENT— ADMINISTRATION. 

The  track  materials  came  mostly  from  American-  sources.  The 
ties  are  Japanese  hardwoods.  The  line  was  cheaply  constructed, 
with  a  small  amount  of  ballast. 

Most  of  the  rolling  stock  is  of  American  manufacture. 

The  line  is  under  the  administration  of  a  managing  director  gen- 
eral, Mr.  Chong  Hong  Nam,  who  is  located  at  Swatow.  Mr.  W.  T. 
Cliing  is  secretary.  Purchases  are  made  by  the  managing  diiector 
general. 


CHINA. 


123 


YL  CHi:NiSE  PROVINCIAL  MILWAYS.' 

'iifri<H>ucmoN, 

Til©  earlier  railways  whoso  constmctio'n  was  mndertafen  with 
CMB.'esie  capital  were  largely  of  tlie  cliss  that  Miia  hmsi.  called 'pro- 

Tincial.  'These  wnerally  en'coiiiitered  inancial  diffi:CTilties  of  some  sort 
ill  the  course  of  tma  and  have  generally  disappeared  as' nroFiiieial 

ojects.  Most  of  thfiiin  h»ve  been  taken  over  by  the  Ministry  of 
^)omiiMiiiicalioii3  as  Chines*^  Govemment  Railways.  The  foibwing 
arc  the  only  ones  left,  and  it  is  unlikely  that  any  provincial  railways 
of  liny  large  importance  will  be  undertaken  in  the  future, 

KIANGSI  .(NAN-SHAN)  RAILWAY. 

LOCATION  AND  BITENT. 

This  line  starts  at  tlic  Yangtze  River  port  of  Kiiikiang  and  rans  in  a 

81 intherly  direct^^ion  a  (iist:a.iict:*  of  about/  87  miles  to  Nanchang,  at  the 

iBt)uth  of  the  Kan  River,  at  the  head  of  steam  naYigat.ion  on,  Poyang 

Lake. 

Tlie  extensic m  of  this  lifio  has  been  moTiticned  in  connection  with 

the  Shanghai-H,angchow-Ningl)o  Railway  (sec  p.  106). 

:HIST01ICAL  StTlfEY. 

This  line  was  first  projected  in  1904.  The  funds  were  to  he  raised 
by  native  debenture  subscriptions  and  by  increasing  the  'provincial 
salt  tax.  The  project  iiially  received  official  sanction,  uieludiiig 
pc^rmission  from  the  Board  of  Commerce  to  raise  capital  by  the 

issuance  of  lottery  tickets.  But  these  efforts,  reisultecl  in  building 
only  part  of  the  present  line,  and  in  1912  resort  was  had  to  loans  from 
the"  Japanese  Bank  of  Taiwan,  which  linally  made  possible  the  com- 
pletion of  the  Bresent  line  of  87  miles.  This  Japanese  loan,  lias  been 
much  objected  to  by  the  local  .merchants  and  genti,*\'  who  have 
inl,i„.'rcst,s  in  tlie  project. 

T,he  construction  was  under  the  d,iK»ction  of  Japanese  engineers, 
and  the  first  20-m,ile  section  was  ©iiened  for  service  in  Deceml)er, 
191.0.  The  line  to  N'ancliaug  was  opened  the  latter  part  of  1916,  hut 
with,  one  bridge  inco:m|>lete,  where  traflic  had  to  be  transferred.  It  is 
understood  tliat  the  Japanese  loan  carries  tlie  right  to  finance  any 
other  extensions  that  can  not  be  taken  care  of  by  native  sul>scription. 

TIAFHC  ,ANP  FKOFITS. 

Xo  ,reliable  data  are  obtainable  regarding  tlie  traffic  and  revenues 
of  this  line,,  but  from,  uivestigatioii  on  the  ground  it  would  seem  that 

earnings  depend  on  passenger  traflic  rat-lier  than  frei^glit  business,  and, 
as  this  line  is  paralleled  throughout  its  entire  length  by  the  Poyang 

»  The  TaiW,tor  (,„\ngaiig,ki)  Li$I,:it  Railway  is  m  typitia,!  Cliinft'MJ  proTlnPial  railway,  but,  on  acawiit  of  its 
iMittg  ,l3'ait0cl,  in,  ,4Iiinchuria  ■A!i,ti"eon„ne:-led  willi  die  C Wilts©  Eastirii  liailwty,  it  fa  showa  with  tlie  Mm- 

ilijyflaii,  .group  of  railm'ay s  on  page  2,ld. 


Lake  transportation  lines,  the  conclusion  seems  warranted  that 
profital>le  business  will  not  develop  until  the  line  is  extended,  par- 
ticularly m  outlined  in  connection  witli  the  Shanghai-IIangchow- 
Ningpo  Railway.     No  information  was  obtained  as  to  actual  official 

results,  hut  it  is  understood  that  the  line  has  shown  no  net  profit  to 


EQUIPMENT  AND  PURCHASES. 

The  roadway  and  track  materials  are  almost  entirely  from  Chinese, 
Japanese,  and  American  sources — largely  the  last-named. 

All  the  locomotives  and  a  large  part  of  the  passenger  and  freight 
care  are  of  American  manufacture. 

Tlie  head  office  of  this  railway  is  at  Kiukiang,  and  the  present  stall 
is  partly  Chinese  and  partly  Japanese.  Considerable  preference  is 
probably  given  at  the  present  time  to  material  from  Japanese  sources. 

HANKING  CITY  RAILWAY. 

LOCATION  AND  EXTENT. 

Til  is  is  what  might  be  considered  a  heavy  steam  tramway  using 
ordinary  steam-railway  equipment.  It  starts  on  the  bank  of  the 
Yangtze  Kiver  near  the  landing  hulks  of  the  Yangtze  River  lines  and 
not  far  from  the  Nanking  terminal  passenger  station  of  the  Shanghai- 
Nankmg  Railwaj.  It  runs  a  distance  of  about  8  miles  to  the  center 
of  the  Chinese  city  of  Nanking,  which  at  one  time  was  the  capital  of 
the  Chinese  Empire. 

The  greater  part  of  the  line  is  inside  the  walled  city.  It  passes 
through  the  wall  at  a  pomt  less  than  2  miles  from  the  terminal  on  the 


bank  of  the  Yangtze  Kiver 


HISTORY. 


Mr.  Tuan  Fang,  then  viceroy  of  the  Liang  Kiang  Provinces,  built  the 
line  out  of  provincial  funds,  and  it  has  been  known  as  the  ''Viceroy's 
Railway."  The  line  was  first  opened  for  traffic  in  August,  1908. 
Mr.  Leeme  (British)  was  the  engineer  in  charge  of  construction.  Tho 
gauge  of  the  track  is  4  feet  8i  mches. 


EQUIPMENT  AND  TRAFFIC. 


The  roadway  and  track  materials  seem  to  have  come  from  various 
sources,  but  a  considerable  amount  is  of  American  manufacture. 
This  line  has  only  a  small  amount  of  rolling  stock.  The  two  loco- 
motives are  of  American  manufacture.  The  freight  and  passenger 
cai*s  were  formerly  used  on  the  Woosung  branch  of  the  Shanghai- 
Nanking  Railway  before  this  branch  was  taken  over  by  the  present 
administration.  This  equipment  was  refitted  with  Jamicy  couplers 
and  Westinghouse  air  brakes.  When  the  writer  inspected  the  lin© 
only  one  engine  was  in  service;  the  other  was  undergomg  badly 
needed  repairs.  The  roUing  stock  was  in  a  more  or  less  run-down 
conJition,  as  was  the  track  also. 

The  traffic  is  mostly  passenger  business,  and  during  the  recent 
political  troubles  the  use  of  tho  line  has  been  largely  monopolized  by 
tho  provincial  miUtaiy  authorities.  It  is  understood  that  the  lino 
does  not  meet  operating  expenses — to  say  nothing  of  showing  any 
profit — and  this  condition  has  prevailed  for  some  time. 


Vila  I^tlllll.l!n9.l!i  IIl.Uy9IKlil,L  MAifjWiilCI* 
INTIODUCTION. 

The  following  account  does  not  attempt  to  cover  all  tlie  short 

industrial  'Jrailways^  that  may  exist  in  China  at  present.  In  the  case 
of  those  mentioned,  the  information  was  obtained  chiefly  in  connec- 
tion with  the  industries  that  the  lines  serve.  In  each  instance  the 
lines  discussed  may  in  time  come  to  assume  mnch  more  importance 
than  they  possess  at  present,  on  account  of  the  probable  growth  of 
the  industries  served  and  the  fact  that  in  the  future  such  concerns 
wiH  probably  be  required  to  provide  most,  if  not  all,  of  their  indus- 
iritl-railway  facilities. 

The  prediction  seems  justified  that,  in  tlie  future  railway  develop- 
in,ent  of  China,  the  Ministry  of  Communications  will  largely  direct, 
if  not  entirely  control,  the  construction  and  operation  of  all  com- 
mercial, railways,  although,  in  conformity  with  the  present  policy, 
'branch  railways  may  be  occasionally  built  and  in  some  instances 
operated  by  provinckl  or  private  interests.  But  it  wiU  be  only  a 
question  of  time  until  the  control  of  all  commercial  railways  will  pass 
to  the  Ministry  of  Communications.  It  is  felt,  however,  not  only 
that  industrial  railways  such  as  the  following  will  be  under  the  control 
of  the  industries  served,  but  also  that  there  will  be  a  growing  tend- 
ency to  force  the  industries  to  build  their  own  railways — ^including, 
in  special  instances,  branches  of  considerable  length. 

TAIEH  EAUiWAY  ^(HAN-YEH-PING  CO.X 
^WMaino'N  AKP  owi 


Tliis  is  a  railway  of  2-foot  gauge,  from  the  ore-shipping  port  of 

Hwangchow  on  the  Yangtze  River  to  the  Sztse-Slian  and  Tien-Shan 
mines,  generaiy  known  as  the  Tayeh  iron  deposits.  The  present 
line  is  17  miles  in  length,  with  a  considerable  amount  of  tracks  at 

each  terminal,  particularly  at  the  mines.  The  Han-Yeh-Ping  inter- 
ests are  in  charge  of  tliese  operations,  although  the  mines  are  sup- 
posedly worked  for  the  Chinese  Gpvernment.  rhe  writer  was  unable 
to  ascertain  the  details  of  the  arrangement.  The  products  of  these 
mines  are  depended  u|>on  entirely  for  the  operations  of  the  Han- 
Yeh-Ping  Iron  and  Steel  Works  at  Hanyang  (Hankow) ;  a  consid- 
erable amount  of  the  ore  goes  to  the  Japanese  Imperial  Steel  Works 
at  the  port  of  Wakamatsu  near  Moji;  and  there  are  in  course  of 
construction  two  400- ton  blast  furnaces  on  the  Yangtze  River  near 
the  present  terminal  of  this  line,  which  will  also  depend  on  these  ores. 

TKAFFIC  AND  BQiUIPMENT. 

The  traffic,  of  this  Mne  consists  almost  entirely  in  the  handling  of 
these  ores;  it  is  very  heavy  for  this  2-foot-gauge  railway,  with  its 
present  small  ec|uipment.  "A  number  of  the  locomotives  and  some 
of  the  other  rolling  stock  are  of  American  manufacture,  but  most  of 


CHIITA. 


125 


this  equipment  has  been  in  service  for  a  number  of  years  and  is  now 
more  or  less  obsolete,  considering  the  advance  in  recent  years  in 
industrial  railway  equipment  for  the  handling  of  iron  ores.  It  seems 
probable  that  this  railway  will  have  to  be  largely  rebuilt  and  a  con- 
siderable amount  of  additional  equipment  provided  to  handle  tliis 
growing,  important  traffic. 

MANAGEMENT. 

The  line  is  under  the  management  of  a  superintendent,  Mr.  C.  Y. 
Wang  (Chinese).  Several  members  of  the  technical  staff  are  Japa- 
nese, The  chairman  of  the  Han-Yeh-Ping  interests  is  Mr.  Sun  Pao 
ill,  and  the  general  business  manager  is  Mr.  Wong  Kokshan,  both 
of  whom  are  located  in  the  company's  Shanghai  office  at  36  Szechwan 
Road.  Mr.  Wong  Kokshan  has  general  direction  of  all  purchases 
for  the  Han-Yeh-Ping  interests,  which  include  the  Tayeh  iron  mines, 
the  Pinghsiang  coaJ  mines,  and  the  iron  and  steel  plant  at  Hanyang 
(Hankow).  Mr.  S.  O'Hara,  Grosvenor  Mansions,  76  Victoria  Street, 
Westminster,  London,  S.  W,,  is  resident  agent  in  England  for  these 
interests. 

KAILAN  MINING  ADMINISTRATION  RAILWAYS  (KAIPING  COAL  FIELD). 

LOCATION. 

These  are  branches  of  4-foot  8i-inch  gauge,  connecting  the  mines 
and  works  of  the  Kailan  Mining  Administration  with  the  Pekino-- 
Mukden  Railway  where  the  latter  passes  tlirough  the  Kaiping  Basin, 
which  hes  between  the  stations  of  Tangshan  and  Kuyeh,  168  and  183 
miles,  respectively,  northeast  of  Tientsin.  These  branch  rail  ays 
are  used  entirely  for  the  handling  of  this  concern's  products. 

The  Kaiping  Basin  covers  an  area  of  about  95  square  miles  and  is 
intersected  bv  the  Peking-Mukden  Railway  at  the  above  points. 
The  coal  of  the  "  Permo-Carbonif erous "  be'ds  is  deposited  in  some 
13  seams,  with  a  total  thickness  of  from  40  to  60  feet  at  the  Tangshan 
shafts  in  the  southwestern  part  of  the  basin,  60  to  80  feet  at  the 
Machiako,  80  to  90  feet  at  the  Chaokochwang  shafts  in  the  southwest- 
central  and  north-central  parts  of  the  basin,  and  40  to  50  feet  at 
the  Linsi  shaft  in  the  northeastern  part  of  the  basin.  The  proving 
has  shown  that  there  are  about  1,000,000,000  tons  of  coal  in  this 
mining  concession.  These  coal  deposits  are  miderlaid  with  seams 
of  good  fire  clay. 

HISTORICAL  SURVEY. 

The  coal  and  fire-clay  outcrops  of  the  Kaiping  Basin  have  no 
doubt  been  known  and  worked  by  Chinese  methods  for  several  thou- 
sand years.  The  present  administration  came  into  existence  July 
1,  1912,  by  the  amalgamation  of  the  Chinese  Engineermg  &  Mmiiig 
Co.  (Ltd.),  a  British  company  registered  in  London,  and  the  more 
recent  native  concern  known  as  the  Lanchow  Mining  Co.  This 
combination  has  a  share  capital  of  £2,000,000  and,  in  addition,  an 
issue  of  £1,200,000  of  6  per  cent  debentures.  As  alreadv  mentioned, 
the  Tangshan  mine  was  first  opened  in  1878  in  connection  with  the 
mule  tramway,  7  miles  long,  that  was  later  extended  until  it  became 
the  Peking-Mukden  Railway  system.  This  is  the  oldest  mine  in 
China  usmg  modern  methods.  The  Machiako  mine  represented  the 
first  operation  of  the  Lanchow  Mining  Co.  There  are  now  five  sets 
of  mining  operations,  with  the  following  daily  capacity:  Tangshan, 


1:2'6 


lAILWAY  MATEITALS,  1Q:UIPME¥T,  AND  SUPPLIES. 


2,200  tons  (of  2,240  pou 
ctiiako,  2,500  tons,;  Qiao 
total  capacity,  10, 


;  Tan,,gslian,  North  Wast,  800  tons;  Ma- 
""  waiig,,  2,500   itms;  Linsi,  2,500  tons; 


OUTPUT  or  MINIS— MfllBM  OP  tMPLOTlffl. 

Tlie  annual  output  of  tlieso  mines  is  about  3,250,000  long  tons  of 
reasonably  good  bituminous  €oal»  of  wliicli  al>out  100,000  tons  ai-c.  at 

present  con'vertecl  into  coke.  Tins  concern  also  prociuces  a  vpry 
eonsiderable  quantity  of  fire  bricks,  floor  tiles.,  glAxed  tiles,  stoiu* 
■piping,  and  aiinilar  fire-clay  products.  It  amiears  fn-opcr  to  incntiofi 
in  til  is  connection  tliat  tlie  works  of  the  Oioe  fising  Cement  Co.  (Ltd.) 
iri?  located  in  the  Kaiping  Bas^in  near  Tangslian. 

The  total  number  of  cm|>lo\-c(s  in  the  administration  m,in,m  is 
about  25,000,  of  wliifh  14,000  krt  underground  worlxci-^.,  (i.OOO  over- 
ground, 1,000  in  the  fire-€la\'  works,  and  2,500  at  the  docks  ([jarticu- 
larly  at  Chin'wangtao) — leuA'ing  about  1,500  m,isrellaneous  employees. 

MANAGEMENT. 

Mr.  Yuan  Ke  Fung  is  direct^or-ffeneral  of  the  administration.  Mai. 
S.  W.  Natlian,  11.  E.,  is  general  mianagcr  in  general  cliarge  of  all 

departments.  The  head  Cliinese  ofliee  is  in,  M^eadow  Road,  Tioitsin. 
Mr.  A,.  Docquier,  located  at  Tangslian;  is  enginecr-in-chief  and  di- 
fectly  in  charge  of  operations  iii  the  field. 

llT:EN9lOliB  AMD  IMFIlOViaii:ii»TS. 

The  writer  learned  from,  authoritative  sources  tliat  this  eoneem 
contemplates  the  expenditure  of  about  £2,000',000  after  the  end  of 

the  W:ar,  in  extensions  and  improved  by-pTodoet  methods.  The 
future  prospects  of  thk  project  seem  very  bright,  and  one  appears 
entirely  m^aiTanted  in  saying  that,  m-itli  the  large  deposits  of  roaaon- 
,ably  good  coal  controlled  by  this  concession,  the  short  railway  haul 
(aviiraging  m  little  more  than  75  mMes)  to  the  ice-free  port  of  Chin- 
.wangtao,  the  very  large  markets  easily  reached  by  ocean  shipping, 
and  th©  ample  supply  of  robust  labor  in  the  district,  this  concern 
should  find  a  reaciy  market  for  any  increased  production.  These 
conditions  8©€'m  to  point  to  large  proti,ta  in  the  fut^ure,  justifying  this 
very  considerable  expenditure  in  extensions  &nd  im,provemente, 

TAI-TSAO  KAIiWAl  (C^IN'G  HSING  COAL  CO.X 

Tliis  !in,e  is  located  in  tlic  southern  part  of  tlie  Province  of  Shan- 
tung, connectingj  the  coal,  mines  north  of  Yihsien  with  the  Grand 
Canal.  Connections  are  iilst>  made  with  the  Tientsin-Pukow  Rail- 
way. There  are  about  27  inEes  of  railway,  of  4-foot  8§-inch  gauge, 
mnd  the  concern  has  a  large  cod  yard  and  wharf  at  its  terminal  o:n 
th,e  Grand  Canal. 

Jill  materials  and  equipment  are  of  German  m,anofacture.  The 
liead  office  is  at  No.  8  Taku  RomI,  Tientsin.  Mr,  C.  von  Hanneken 
and  Mr.  Hsu  Shi  Kang  were  the  directors  of  this  enterprise  before 
China  entered  the  war.'"  All  the  otlier  officials  were  Germans,  and  it 
is  understood  that  the  mtorprise  was  largely  inancod  with  German 
capitaL  though  there  were '  supposed  tO'  be  a  number  of  Chinese 
slmreholdefs. 

So  far  m  can  be  learn^ed,,  no  extensions  or  improvements  are  con- 
templated. It  was  impossible  to  get  deflriitc  information  regarding 
the  probable  future  of  mis  development. 


¥m.  FOIEIGN-CONCESSION  RAILWAYS. 

INTIODUCTION. 

Five  different  railways  come  under  the  above  classification,  as 
siiowB  by^the  table  on  page  43.  The  British  section  of  the  Canton- 
Kowloon  Radway  has  already  been  covered  (see  p.  1 16).  The  Chinese 
Eastern  Radway  and  the  South  Manchuria  system,  both  of  which 
are  m  Manchuria,  will  be  included  in  the  discussion  of  the  Manchu- 
rian  aroup  of  railways.  This  leaves  the  French  Indo-China  line  from 
Haiphong  to  Yunnanfu  (287  miles  of  which  is  in  the  Chinese  Province 
of  YuiiJian)  tuid  the  Shantung  (Santo)  Railway,  tlirough  the  Prov- 
ince of  Shantung,  formerly  a  German  line  but  now  under  the  control 
and  management  of  the  Japanese. 

^  As  already  stated,  these  concessions,  with  the  exception  of  the 
Can ton-Kowloon,  were  exacted  from  China  during  the  ''Battle  for 
Concessions,"  the  lines  were  built  with  foreign  funds,  and  they  have 
been  operated  entirely  in  the  interest  of  the  foreign  countries  con- 
eerned.^  In  all  instances  except  that  of  the  Canton-Kowloon  the 
concessionaires  have  claimed  the  right  to  investigate  and  develop 
the  resources  of  the  regions  traversed  by  the  railways,  particularly 
coal  and  other  mineral  deposits. 

YUNNAN  (TIEN-YUEH)  RAILWAY. 

LOCATION  AND  EXTENT. 

This  Mne  is  located  in  Yunnan,  one  of  the  southwestern  Provinces 
of  Chma,  lying  next  to  Indo-China.  Tliis  railway  crosses  the  Tong- 
king  border  at  Laokai  and  runs  in  a  northwesterly  direction  to 
lunnanfu,  the  capital  of  Yunnan,  a  distance  of  287  mdes.  The  sec- 
tion of  the  line  in  French  territory  starts  at  the  seaport  of  Haiphong 

find    rilTYa    in    o    -n/\inf k^*r/><3  4-^«.l^^   Al^^^   4.1^^     i.T 1_    TT     --      •       ,1  i.      -,      *1 


HISTORICAL  SUBVEI* 

The  history  of  the  Chinese  section  of  the  Yunnan  Railway  is 
closely  connected  with  that  of  the  French  Railway  in  Tongling 
The  hrst  railway  in  Tongking  was  of  60-centimeter  (23.56-incE) 
gauge,  and  extended  from  Langson  on  the  Kwangsi-Tongking  border 
to  Phulangthuong  (Kent's  ''Railway  Enterprise  in  China").  This 
line  was  later  changed  to  meter  gauge  when  extended  to  Hanoi.  It 
IS  now  tlie  Hanoi-Langson  section  of  the  French  Indo-Cliina  Rail- 
ways and  IS  the  line  that  has  been  suggested  to  extend  to  Lungchow^u 
and  from  this  point  to  Manning,  the  capital  of  the  Provmce  of 
Kwan^i.  The  first  step  toward  the  present  meter-gauge  lines  was 
token  in  the  latter  part  of  1897  by  M.  Doumer,  the  new  Governor 
General,  who  had  assumed  his  duties  in  the  early  part  of  that  year. 
He  submitted  to  the  Conseil  Sup^rieure  of  Indo-China  a  scheme  in- 
volving the  construction  of  some  2,000  miles  of  line,  which  was 

127 


IBIIIII 


128 


BAILWAT  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


C/X1.1.JM  As 


129 


rench  Chamber 


approved  by  that  body  after  being  passed  upon  by  a  c< 

it.  "Do«mer  next  secured  the  passage  of  a  law  by  the  Frenc 

in  1898  authorizing  the  const.niction  of  this  system  of  railways. 

In  the  meantime  steps  had  been  taken  with  the  Chinese  authorities 
to  secure  the  ■necesea.ry  coneeasions.  As  a  result,  one  of  the  features, 
of  the""B>attIe  for  Concessions"  was^  that  in  April,  1898,  China  by 
convention  ^granted  this  and  other  concessions  to  France.  Mr.  Keiu , 
in  his  '''Eailway  Enterprise  in  China,"  states  the  terms  as  follows:' 

(1)  'K'waogdi.aiiwan  to  be  Immi  to  France  m  a  coali:!!^  station,., 

(2)  The  Tigfct  to  be  gimated  tO'  'FniEce  to  constnict  m^  railway  U  Ynnmnfn  from  the 
ToiiRfcing  froatier.  ^    .-,     .. 

f,:l"l  ,A'promi»  to  be  .given  by  Fnmce  not  to  alienate  any  terntory  in  tbe  tbree 
rr.'"» vi Of ea  of  Kwangtmig,  ,K,waii|g8i,  aad  Yimnan,,  which,  border  on  th©  Freach  frontier. 

(4)  The  Cbineae  Government  to  agree'  that  if  ever  it  constitntea  a  postal  depart- 
ment independent  of  the  Maritime  CuatoM,  md  if  a  European  is  to  be  appointed  as 
director  thereof.  France  shall  have  m  eqvii^'n^t  with  that  of  other  Towere  to  nominate 
a  candidate  for  the  post  o,f  director.  (Note.— The  prefent  director  general  of  the 
Chi„n,twc  Post  Office  is  now  a  Frenchman.) 

In  addition,  the  Chinese  subsequently  granted  the  concession  for 
the  building  of  a  line  from  Lungchow,  and  the  French  have  advanced 

flaims  at  Tarious  times  that  this  concession  al,so  gives  them  the  right 
to  extend  this  line  to  Manning,  the  capital  of  the  Province  of 
Kwangsi.  The  building  of  the  Laokai- Yunnan  section  and  the  oper- 
ation, of  the  entire  li,ne  from  Haiphong  to  Yunnan  was  given  by  the 
French  ■Groveni,m,ent  to  ,a  syndicate  of  the  principal  financial  houses 
in  Pa,ris,  who  organized  tfie  Comp,agnie  •Fran^aise  des  Chem„ins  de 
Fer  de  Flndo-Chine  et  dii  Yunnan^  and  this  conipany  in  turn  sublet 
the  construction  work  to  the  Soci^t^  de  Construction^  des  Chem,ins 
de  Fer  Indo-Ch,inois.  The  final  a:greemeut  with  the  Chinese  authori- 
ties wm  conduded  m  the  fall  of  1903.  'Mr.  Hsu  says  ,regarding  this 
sitnatinn: 

The  Chinese'  Government  han  no  further  oMlp,ti<m,  than  to  ronwnder  the  neceeeary 
land  for  the  :iiiift  ,and  ,i,tB  dependendeB.  The  gaii,ge  of  the  line  ie  to  be  1  meter.  Once 
the  line  be  ■completed,  and  if  the  parti«  concemed  deem  it  exnedieni,  after  an  under- 
Btaoding  bai  'b««i  arrived  at  between  the  high  provincial  aiitliori:tie8  on  the  one  aide 
and  the 'French  minister  and  the  Wai,wupn  on  the  other,  an  to  the  mode  of  procedure, 
branch  lines  connectinf  with, the  mainline  maybe  cowtnicted.  ^,AllBnppliee,  ma- 
cliiiiery,  and  materials  necciiary  for  the  conetrnelion  ,aiid  exploitation  of  the  railroajl 
Bhall  be  exempted  from,  import  duty.  In  cane  of  war  with  other  nation,8  and  the_rail- 
foad  not  maintaining  its  neutrality,  China  may  take  over  tbe  Iine^  and  operate  it,  if 
ihe  thinks,  lit.  On  the  expiiation,  of  18  ypars.  after  the  date  of  iigning  tlie  agreement 
the  ( hinefie  Government  has  the  right  to  get  back  tl:e  land  granted  and  to  repurchase 


the  line  from  the  French  Government  oliet  the  myit-eiit  of  all  exoeneee  put  into  the 

railroad,  inclnding  etocke,,  interest  and  principal  of  lionds,,,  and  all  propeitiea  in  con- 
ii,ectio:n  with,  the  rai„lroad. 

'Tills  concession  runs  for  80  years,  at  the  expiration  of  which  time 

tbe  line  is  to  revert  to  the  Ch.in,ese  Goreniirent.  The  line  was  con- 
st ,ruct,ed  entirely  with  French  capital  and  i,8  now  controlled  and 
operated  by  the  French.  Initial  work  was  undertaken  at  Laokai  in 
1,8§9,  hut  the  natiyes  objected  and  obstructed  progress  by  causing 
considerable  disturbancea.  Next  the  Boxer  uprising  suspended  all 
work  until  1901.  It  mas  then  decided  to  comp'ete  first  the  line  from 
Hanoi  to  Taokai.  Tliis  was  done,  and  then  the  construction  of  the 
Chinese  section  was  taken  in  hand,  but  the  line  to  Yunnanfu  was  not 
finally  completed  and  put  in  seivice  until  April,  1910. 

The  construction  of  tJie  Chinese  section  was  very  difficult  and  expen- 
sive.   Ma,ny  unusual  obstacles  were  encoun,te'red;  one  was  tbe  scar- 


city  of  labor  in  this  part  of  China  capable  of  doing  railway  construc- 
tion work,  and  another  was  the  fever-ridden  country  through  which 
part  of  the  railway  runs.  It  is  stated  that  the  number  of  coolies  who 
died  on  the  construction  work  was  about  40,000.  On  one  stretch  of 
about  50  miles  there  is  a  climb  of  approximately  4,800  feet,  thus 
approximating  a  2  per  cent  grade  for  50  miles.  The  highest  point 
on  the  line  is  about  6,625  feet  above  sea  level.  On  the  Chinese  section 
there  are  147  tunnels,  the  longest  being  2,112  feet.  On  this  same 
section  there  are  47  bridges  of  more  than  65-foot  span. 

BXTENSIONS  CONTEMPLATED. 

This  line  being  in  the  area  claimed  as  their  ''sphere  of  influence," 
the  French  assert  the  exclusive  right  to  finance  and  construct  all  the 
railways  that  the  Chinese  can  not  build  with  native  funds.  As 
already  mentioned,  the  Chinese  admit  the  granting  of  tbe  concession 
to  extend  the  Hanoi-Langson  line  to  Lungchow,  and  the  French 
insist  that,  in  addition,  this  concession  gives  them  the  right  to  extend 
this  line  to  Nanning.  The  French  also  claim  the  right  to  extend  the 
Laokai- Yunnan  section  to  Hsuchow  on  the  Yangtze  River  and  from 
there  to  Chengtu,  tbe  capital  of  the  very  important  Province  of 
Szecbwan — also  to  construct  another  line  paralleling  the  Yangtze 
River  from  Hsuchow  to  Chungking,  where  connection  would  be  made 
with  tbe  Hankow-Szechwan  Ime  at  a  point  something  more  than  150 
miles  southeast  of  Chengtu.  A  reconnaissance  has  been  made  of  the 
route  for  the  extension  of  the  Laokai- Yunnan  section  to  Hsuchow. 

MATER,IALS  AND  EQUn*MENT. 

Practically  all  roadway  and  track  materials  on  this  system  are 
from  French  sources;  the  weight  of  the  rail  is  25  kilos  per  meter 
(50.3  pounds  per  yard).  Tie-plates  and  screw  spikes  have  been  used 
for  the  greater  part  of  tbe  construction.  A  considerable  number  of 
steel  ties  of  robust  design  have  been  used :  these  are  shown  in  figure 
15  (see  general  subject  of  ties,  p.  73).  White  ants  are  very  destruc- 
tive in  parts  of  this  territory.  The  rolling  stock  also  is  practically 
all  of  French  design  and  manufacture.  One  notable  exception  to 
this,  however,  was  the  purchase  of  three  locomotives  from  the  Japan- 
ese shops  of  the  South  Manchuria  Railway  Co.  at  Shakako  (Dairen). 
These  tlu-ee  locomotives  were  designed,  as  well  as  manufactured,  at 
those  works. 

MANAGEMENT  AND  PURCHAS^EB. 

The  general  administration  of  the  entire  Tongking  Railway  sys- 
tem, including  the  Chinese  section,  comes  under  the  jurisdiction  of 
M.  Louis  Constantin,  Inspecteur  General  des  Travaux  Publics  de 
rindo-Chine.  The  direct  administration  and  opmation  of  the  C^hi- 
nese  section  is  under  the  jurisdiction  of  a  French  official,  whose  title 
is  director  and  engineer-in-chief. 

Purchases  for  the  entire  system  are  in  charge  of  M.  Pierre  Foursand, 
Clief  du  Magasin  G6n^ral.  All  these  officials  are  located  at  Hanoi, 
the  head  office  of  the  entire  Indo-China  system. 


106229"— 19- 


d 


BAILWAY   MATI'JIIALS,  BQIJIPMENT,   A'ND  SUPPLIES. 
iBAOTUNG  (SANTO)  RAILWAf - 

tOCATlOlf  AilD  UTENT. 

Tliis  is  the  iiiucli  <:lisciisseci  Gerniaii  ra/ilway  tlirougb  tlio  Province 
of  Slmntiing,  now  uiicier  the  coiitrol  of  tlie  Jrt|)aiie8e.     Tlie  line  atiirta 

at.  tlie  port of  Tsiugtae  on.  tlie  bay  of  Kiaoctow  and  runs  in  a  west- 

erlv  direction  to  Tsioaiifu,  the  capital  of  Shantung,  a  distance.  o.f 

alioiit  245  I niles.    Th.cre  track  connection  is.ra,ade  with  the  Tientsin- 

Piikow  R.ailwav,  although  the  terminal  faciliti^es  are  entirely  separate, 
ns  sIk>wii  hv  the  photogranhs  of  tlic  terminal  stations  (figs.  3  an.d  4).. 
Tliere  are  more  'than  25  branches,  built  to  reach  tlie  .Posha.n  ccial 
.mines;  tlicsc  branches  connect  wi,tli.  the  m,ain  line  about  f50  miles 
f.ro.in  Taiagtau... 

■IBTOWCAl.  SIJKVBY. 

'Th.e  ostensible  cause  for  the  Cferaian  occn:pation  of  Kiaochow  B^ay 
Ni"»Tei"nber  1.4,  1807,  was  the  murder  of  two  German  m.i8sionai-ies 
earlv  tha.t  month  in  the  ProTince  of  Shnntiing.  In  view  of  events 
that  ha\-e  since  occurred  it  would  appca.i-  t.|iat  'the  German  occupa^ 
tion  was  deliberatelyj^ianncd  and  that  the  occurrence  mentioned 
was  ouIt  a  pretext.  "Tlie  Germans  promptly  followed  the  occupation 
'b.v  denmnds  on  tlic  Chinese  .Imperial  Govern.ment  at  Peking,  which 
were  vigorouslv  followed  up  and,  in  fact,  added  to  from  time  to  time, 
with  the  result  that  a  lease  wm  signed  March  6,  1808,  for  Kiaochow 
Bay  and  a  definite  land  area  (about  200  soiiare  miles)  that  included 
the'"  present,  port  and  citv  of  Tsingtau.  .At  the  same  tim,e  a  eonventioii 
w:as"concluded  for  the  buikiing  of  tlie  present  Shantung  Railway  and, 
in  addition,  prov.i,sion  was  made  for  the  buildin|j'  of  two  other  lines- 
one  from  a  'junction  near  Kiaochow  to  .Icho'wfu  and  lilie  second  to 
complete  the  triangle  to  Tsinanfu  on  about  tlie  route,  of  the  present 
Tientsin-Pukow  line.  Tlie  concession  included  also  the  right  to  fur- 
nish the  capital  for  all  railways  in  Shantung  that  could _not  be  fin,anced 
.from  native  sources.  The  p.rov.ision  wi.th  regard  to  this  last  ni.atter  .ia. 
.riven  as.  ■^^"'*''»™^a  "^^^^  '^**  W«i.i  in  'li.i«  *'  RjmIwiiv  Froblftma  in  China''': 


CMIWA, 


itji 


lows  by  Mr.  .Hsu  in  his.  "liailway  .Problems  in.  China": 

,lt  at  ftMV  time  tlie  Cliinew  ahoiilci  l'or.iii  a€*.€me3  for  tlie  developmont  of  Shaaturig, 
for  t,b.e  execution  of  wliidi  it  13  nec-eaaary' to  oblaiB  .fore%B.  capitiil,,,,  the  Chinese  Goverii- 
.meat,  or  w:ha.tev.er  Ch.io.eBe  mav  he  iotefested  ia  .such  schemes.,  ah,all,  hi  the  tiret  iii.- 
itance,  apply  to  (ier.irjiii  capitalists..  Application  shall  also  be  made  to  German  marm- 
factu.rer8  for  the  neceaaary  inacliinery  and  nmt«ria.Is  before'  the  1n2.nufact11.rer8  of  any 
other  Power  are  approaclied ..  Sho.ul(t  Gamaui  «pil»liata'  of  iii«milactiir«.r8  d'O'Cline  to 
take  up  the  bmiieas.  the  *.  "hiaese  shall  then  t)e  at  liberty  to  ohtai.ii  .money  and.  niateriak 
.Ironi  sources  of  other  natio.nali.ty  than  G.er.o;ian. 

There  w.as  keen  competition  among  the  Gcrm.an  financial  interests 
to  obtai.n  the  concession  from  the  German  Government  to  build  these 
lines,,  with  the  resul.t  that  a  co.iiibinat.ion  of  German  financial  houses 
w.a3  effected.,  and  .in  June.,  1S89,  the  Schantui:ig  Eisenbahn.  GeseE- 
scliaft  secured  the  co.n.cossion  to  bu.ild  the  line  wit.h  "joint  Chinese 
and  German  c.apit.aL"  Probably  not  a  •sin^.le  subscriber  was  Chiiics(\ 
The  capital  used  .in  the  co.nstr action  of  tliis  line  and  also  in  the  de- 
velopment of  the  .resonrces  along  the  line  has  been  very  largely,  if 
not  entirely,  German....  'This  w.as  .also  tlie  case,  with  the  improvemen.ts 
socli  as  the  port  imd  city  of  Tsingtau  .and  the  new  part  of  the  town  of 
Tsinanfu  at  the  m^estem.  terminal    The  above  co.ncession  also  ca.rriod 


the  right,  .after  the  end  of  1908,  to  build  the  line  from  the  junction  at 
Kiaochow  to  Ichowfu.     In  addition,  the  exclusive  right  to  prove 


and  daim  the  mineral  resources  for  future  development  of  the  rail- 
way zone  (consisting  of  a  strip  extending  for  about  10  miles  on  each 
side  of  the  center  line  of  the  railway)  was  granted  this  syndicate. 
Work  on  the  Shantung  Railway  was  started  promptly  and  the  lino 
wag  completed  and  put  in  service  in  1904.  ^Flie  cost  approached 
150,000  (gold)  per  mile  of  line. 

Giving  due  weight  to  the  reasons  that  have  been  advanced  by 
various  authorities  for  the  German  seizure  and  forcible  occupation  of 
this  Chinese  Province  for  their  operations,  the  writer  is  convinced, 
after  going  over  the  ground,  that  one  of  the  particular  and  very  souiicl 
reasons  from  the  German  standpoint  was  tliat  this  action  gave  tho 
Germans  control  of  a  large  number  of  the  most  robust  and  upstanding 
natives  in  China,  capable  of  standing,  and  willing  to  do,  hard  work. 
In  addition,  this  is  one  of  the  most  healthful  parts  of  China,  and  Tsing- 
tau is  probably  the  most  pleasant  place  of  residence,  all  the  year 
roimd,  on  the  entire  Chinese  coast. 

TUB  POHT  OP  TSINGTAU. 

One  of  the  most  important  and  interesting  of  the  German  develop- 
ments in  Shantung  was  the  very  completelv  equipped  and  well- 
arranged  facilities  at  the  port  of  Tsingtau.  'The  area  of  the  pro- 
tected harbor  of  Kiaochow  Bay  is  approximatelv  200  square  mih^s, 
in  addition  to  the  200  square  miles  of  so-called  leased  territory. 
The  port  facilities  consist  of  a  large  basin  and  several  slips  for  seagoing 
vessels  of  all  drafts  up  to  35  feet  and  a  smaller  basin  for  native  craft! 
The  construction  is  of  the  most  substantial  and  permanent  character'. 
The  slip  between  the  two  principal  piers  is  capable  of  berthing  the 
largest  vessel  in  ajiy  senice  in  the  world  to-dav  or  likelv  to  be  built 
in  the  next  generation.  One  of  the  disadvantages  of  the  harbor 
IS  the  height  of  the  tides,  which  is  very  considerable  and  causes 
eurrents  rather  troublesome  for  the  navigation  of  large  vessels  through 
Ine  somewhat  crooked  entrance  of  Kiaochow  Bay, 

On©  of  the  principal  features  of  the  port  is  a  complete  plant  for  the 
repau:  of  ships.  In  this  connection  there  was  originally  a  large 
floating  dry  dock,  but  since  the  occupation  by  the  Japanese  this  has 
been  taken  to  Kobe  and  is  now  in  use  at  that  place  in  takin^r  care  of 
the  repairs  to  Japanese  shipping.  '^ 

ChASa  or  TRAFFIC 

Tlie  service  on  this  line,  particularly  as  regards  passenger  accommo- 
dations, is  somewhat  restricted  under  the  present  Japanese  manage- 
ment. Even  under  normal  conditions  it  is  probable  that  the  freio-ht 
revenues  will  considerably  exceed  the  passenger  earnings,  although  a 
verj  substantial  passenger  business  is  now  done,  which  could  probably 
1)6  increased  by  additional  service.  The  freight  business  comprises  a 
large  amount  of  agricultural  products,  one  of  the  most  important  of 
which  is  Chinese  strawbraid.  In  1915  the  coal  handled  amounted  to 
about  260,000  tons  (of  2,240  lbs.);  in  1916  there  was  an  increase  to 
about  445,000  tons;  and,  with  the  improvements  contemplated  by 
the  Japanese,  there  will  probably  be  a  further  increase,  althoucrh  this 
is  not  likely  to  affect  tlie  ti-affic  materially  until  1919. 

PBOfJTS. 

The  writer  was  unofficial! j  advised  that  the  Japanese  administra- 
tion has  concluded,  as  a  result  of  its  investigations,  that  the  German 


132 


BAIWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


operating  results  were  as  follows  (converted  from  German  marks  to 

United  States  currency  at  the  rate  of  $0,238  to  the  mark) : 


Special  Agents  Series  No.  180. 


YeMM. 


UMB 

1907 

1908 

1909' ,. 

WW 

1M3 


Earnings. 


1667,909 
1,136.248 
1,1M,578 
1,105,534 
1,426.855 
1,627,199 
1,965,956 


Expenses. 


135.1,240 
408,682 
421,422 
342,570 
396,901 
43{,983 
567,244 


Profits. 


1314,669 

727,566 

777, 156 

762,964 

1,029,955 

1,191,740 

1,398,712 


For  1911  and  1912  the  earnings  were  13,496,000  Mex.  and  $4,211,000 
Mex.,  respectively,  hut  expenses  for  these  two  years  were  not  satis- 
factorily determined  and  are  therefore  not  given.  In  1915  and  1916 
the  results  of  the  Japanese  administration  were  shown  in  Japanese 
gold  yen  (yen  =  $0.4985)  as  follows:  Earnings,  3,651,400  yen  and 
4,437,100  yen,  respectively;  expenses,  3,242,200  yen  and  2,937,300 
yen.  The  earnings  for  the  first  six  months  of  1917  showed  a  small 
improvement  over  the  first  six  months  of  1916.  These  figures  are 
shown  as  above  for  the  reason  that  conversion  to  a  common  value 
would  have  to  be  made  on  an  arbitrary  basis,  and  in  this  way  the 
figures  would  lose  much  of  their  significance  to  anyone  familiar  with 
the  rates  of  exchange  in  the  Far  East  during  this  period.  They  jus- 
tify the  conclusion  that  the  financial  results  of  this  line  under  ordi- 
nary circumstances  will  be  satisfactory.  Notwithstanding  the  reduc- 
tion of  the  traffic  as  a  result  of  the  war,  the  earnings  shown  represent 
a  steady  growth  which,  with  the  return  of  normal  conditions,  will 
doubtless  be  continued. 

KMMIBLE  EXTENSIONS. 

What  the  disposition  of  this  railway  will  be  after  the  end  of  the 
war  can  not  be  predicted  at  this  tims.  One  of  the  present  results  is 
that  until  such  time  as  a  final  conclusion  is  reached  the  Japanese 
claim  succession  to  the  German  concessions  in  the  Province  of  Shan- 
tung. So  far  as  can  be  learne  1,  no  consideration  has  been  given  to 
the  building  of  the  line  from  Kiaochow  to  connect  with  the  Tientsin- 
Pukow  Railway  near  Ichowfu.  However,  there  have  been  persistent 
rumors  from  time  to  time  of  Japanese  efforts  to  secure  concessions  to 
extend  the  line  west  from  Tsinanfu  through  western  Shantung  and 
southern  Chihli  to  connect  with  the  Peking-Hankow  and  also  to 
reach  the  valuable  deposits  of  good  coal  in  southern  Chihli,  northern 
Honan,  and  southeastern  Shansi. 

The  Far  Eastern  Review  for  December,  1917,  stated  that  the  Jap- 
anese Department  of  Agriculture  and  Commerce  has  set  aside 
10,000,000  yen,  one  of  the  purposes  being  to  develop  and  work  during 
1918  and  1919  the  mineral  resources  of  Shantung,  particularly  the 
iron  mines  of  Chinlingchin,  about  180  miles  west  of  Tsingtau.  If  a 
large  amount  of  iron  ore  is  developed,  this  will  probably  involve  the 
construction  of  some  additional  branch  lines. 

ROADWAY  AND  TRACK  MATERIALS. 

The  materials  for  this  line  are  all  of  German  standards  and  manu- 
facture.   There  are  more  than  1,000  bridges  of  all  spans,  all  of  which 


FIGS.   28   AND   29.— FOUR-WHEEL   GOODS   CAR   AND    CABOOSE  ON   THE 

SHANTUNG    RAILWAY. 


INTENTIONAL  SECOND  EXPOSURE 


X 


•f  m  Oil 

132 


BAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


operating  results  were  as  follows  (converted  from  German  marks  to 
United  States  currency  at  the  rate  of  $0,238  to  the  mark) : 


Yeare. 

Eanungs. 

Expenses. 

Profits. 

1905 

liWi , 

1907 , !!""."""" 

If'tOS 

1667,909 
1,136.248 

1,19.8,578 
1,105,534 
1,426.855 
1,627,199 
1,965.956 

135:1,240 

408, 682 
421,422 
312,570 
396, 901 
43J,983 
567, 244 

f 31 4, 669 

727, 5(iG 

777, 156 
762  %4 

19[)9 

191,0 ,. , , '„'.. 

1913 , l...[.'.""'y"l"" 

1,029,95.5 
1.191,740 
1,398,712 

For  1911  and  1912  the  earninofs  were  .13,496,000  Mex.  and  $4,211,000 
Mex.,  res j)ec lively,  but  (wpenses  for  these  two  years  were  not  satis- 
factorily determined  and  are  therefore  not  given.     In  1915  and  1916 

the  results  of  the  Japanese  administration  were  shown  in  Japanese 
gold  yen  (yen  =  $0.4985)  as  follows:  Earnings,  3,651,400  yen  and 
4,437,100  yen,  resi)ectively;  expenses,  3,242,200  ven  and  2,937,300 
yen.  The  earnings  for  the  first  six  montlis  of  1917  showed  a  small 
improvement  over  the  first  six  months  of  1916.  These  figures  are 
showTi  as  above  for  the  reason  that  conversion  to  a  common  value 
would  have  to  be  made  on  an  arbitrary  basis,  and  in  this  way  the 
figures  would  lose  much  of  their  significance  to  anyone  familiar  with 
tlie  rates  of  exchange  in  the  B'ar  East  during  this  period.  They  jus- 
tify the  conclusion  that  the  financial  results  of  this  line  under  ordi- 
n_ary  circumstances  will  be  satisfactory.  Notwithstanding  the  reduc- 
tion of  the  tralfic  as  a  result  of  the  waV,  the  earnings  shown  represent 
a  steady  growth  which,  with  the  return  of  normal  conditions,  will 
doubtless  be  continued. 

POSSIBLE  EXTENSIONS. 

What  the  disposition  of  this  railway  will  be  after  the  end  of  the 

war  can  not  be  predicted  at  this  time.*  One  of  the  present  results  is 
that  until  such  time  as  a  final  conclusion  is  reached  the  Jai)anese 
claim  succession  to  the  German  concessions  in  the  Province  of  Shan- 
tung. So  far  as  can  be  lenrnei,  no  consideration  has  been  srivon  to 
thel)uil(ling  of  the  line  from  Kiaochow  to  connect  with  the  tientsin- 
Pukow  Railway  near  Ichowfu.  Ho^\-ever,  there  have  been  persistent 
rumors  from  time  to  time  of  Japanese  efforts  to  secure  concessions  to 
extend  the  line  west  from  Tsinanfu  through  western  Shantung  and 
S(>uthern  Chilili  to  connect  witli  the  Pekiiig-nankow  and  also  to 
reach  the  valuable  deposits  of  good  coal  in  southern  Chihli,  northern 
Honan,  and  southeastern  Shansi. 

The  Far  Eastern  .Review  for  Deceml)er,  1917,  stated  tiiat  the  Jap- 
anese Deiiartment  of  Agriculture  and  Commerce  has  set  aside 
10,000,000  yen,  one  of  the  pui'ixises  being  to  develop  and  work  during 
1918  and  1919  the  mineral  resources  of  Shantung,  particularly  the 
iron  mines  of  Cliinlingchin,  about  180  miles  west  "of  Tsingtau.  If  a 
large  amount  of  iron  ore  is  developed,  this  will  probably  involve  ths 
construction  of  some  additional  branch  lines. 

ROADWAY  AND  TRACK  MATERIALS. 

The  materials  for  this  line  are  all  of  German  standards  and  manu- 
facture.   There  are  more  than  1,000  bridges  of  all  spans,  all  of  which 


Special  Agents  Series   No,  180. 


1 


"0 


,„.„, 


fi 


FIGS.   28   AND   29.— 


FOUR-WHEEL    GOODS   CAR   AND    CABOOSE   ON   THE 
SHANTUNG    RAILWAY. 


Special  Agents  Series  No.  180. 


. 

• 

M 

T' 

1  i-^ 

.-'  ss^lM  jH^ 

t 

Hijii"  /«■■■■ 

Iji?'     1     4                  '  ^ 

:  H 

mm 

i^ 

1 Iliiiii 

iliilliiilllllliliilllllllilPlilllill                                             .,_                 .         ^                                    ,.,— u,4j  m 

(. 

^"^^^ 

•ill 

FIG.  30.— LOW-SIDE  GONDOLA  CAR  ON  THE  SHANTUNG   RAILWAY. 


FIG.  31.— SPECIAL    CAR    FOR    HANDLING    BULK    LIME    ON    THE    SHANTUNG 


CHINA. 


133 


are  designed  for  loading  not  in  excess  of  Cooper  E-35.  These  light 
bridges  are  handicapping  the  Japanese  management  in  its  desire  to 
use  heavier  motive  power.  It  will  be  exceedingly  difficult,  if  not 
impracticable,  to  strengthen  the  present  structures  so  as  to  carry  sub- 
stantially heavier  loads.  A  steel  tie  of  robust  design,  provided  with 
substantial  fastenings,  has  been  used  for  all  tracks  and  appears  lo 
have  given  entirely  satisfactory  results.  The  rail  is  a  special  German 
section  for  use  on  these  steel  ties;  its  weight  is  about  60  pounds, 
with,  however,  a  head  and  girder  strength  probably  equivalent  to  70 
pounds  A.  R.  E.  A.  section.  All  the  track  materials  are  of  typical 
German  standard,  and  so  far  the  Japanese  have  made  little  change 
in  the  way  of  renewals  or  additions— one  reason  being  that  there  was 
a  very  considerable  supply  of  most  parts  in  stock  when  the  Japanese 
assumed  control.  * 

As  already  mentioned,  all  the  stations  and  other  buildings  on  this 
line  are  of  very  substantial  construction  and  in  many  cases  of  ornate 
design.  All  structures  are  permanent  and  adequate  except  as  regards 
the  loading  capacity  of  the  bridges,  and  also  the  turntables,  which  are 
not  capable  of  turning  heavier  engines  than  those  now  in  service. 

ROLLING  STOCK. 

All  the  original  rolling  stock  conforms  in  general  to  the  German 
practice  and  came  from  German  manufacturers.  The  present  equip- 
ment consists  of  53  locomotives  (3  of  which  were  recently  furnished 
by  an  American  locomotive  company),  85  passenger  cars,  and  1,227 
freight  cars  of  all  classes.  In  September,  1917,  the  Japanese  manage- 
ment had  under  way  negotiations  for  buying  several  additional 
American  locomotives,  but  they  were  having  serious  difficulty  in 
obtaining  them.  ^  .  ^ 

Figures  28  and  29,  facing  page  132,  show  a  typical  covered  four- 
wheel  goods  car  and  a  caboose,  part  of  which  is  used  for  handling 
package  and  express  freight.  An  unusual  feature  of  the  caboose, 
from  an  American  viewpoint,  is  the  running  board  for  the  crew  to 
go  along  the  side  of  the  car  instead  of  over  the  top.  Figure  30  shows 
a  low-side  gondola  with  the  old-style  buffers  and  safety  chains,  with 
the  new  automatic  coupler  of  American  manufactui*e  installed  by  the 
Japanese  since  they  took  over  operation  of  the  line.  The  lower  illus- 
tration on  the  same  plate  shows  a  special  four-wheel  car  for  handling 
bulk  lime.  The  writer  was  very  much  inmressed  with  the  utility  of 
this.  It  will  be  noticed  that  the  side  buffers  on  this  car  have  been 
removed  since  the  installation  of  the  automatic  couplers. 

WORKSHOPS. 

There  are  well-equipped  shops  of  moderate  size  for  the  making  of 
all  classes  of  repairs  to  the  rolling  stock.  These  shops  are  located  a 
short  distance  from  the  Tsingtau  terminal.  There  are  also  ample 
engine  houses  and  equipment  facilities  along  the  line,  particularly  at 
all  engine  terminals.  One  feature  in  this  connection  with  which'  the 
writer  was  particularly  impressed  w^as  the  substantial  and  adequate 
water-station  facilities  provided. 

ORGANIZATION  AND  MANAGEMENT. 

Since  the  capitulation  of  the  German  garrison  of  Tsingtau  in  Decem- 
ber, 1914,  the  operation  of  this  railway  has  been  under  the  adminia- 


r' 


I 


t. 


INTENTIONAL  SECOND  EXPOSURE 


Special  Agents  Series  No.  180. 


iPiMilb..ji      J 

w  ^%^kM 

4 

■  'Mm 

^     f     'M                       '  ^ 

'•-           .     ■:ii.-^     ^^^miij 

WRJflCSiL^* 

^ 

i 

FIG.  30.— LOW-SIDE  GONDOLA  CAR  ON  THE  SHANTUNG   RAILWAY. 


FIG.  31.— SPECIAL    CAR    FOR    HANDLING     BULK    LIME    ON    THE    SHANTUNG 

RAILWAY. 


CHINA. 


133 


are  designed  for  loading  not  in  excess  of  Cooper  E-35.  These  li^ht 
bridges  are  handicapping  the  Japanese  management  in  its  desire^ to 
use  heavier  motive  power.  It  will  be  exceedingly  difficult,  if  m^t 
impracticable,  to  strengthen  the  present  structures  so  as  to  carry  sub- 
stantially heavier  loads.  A  steel  tie  of  robust  design,  provided  wilh 
substantial  fastenings,  has  been  used  for  all  tracks  and  appears  to 
have  given  entirely  satisfactory  results.  The  rail  is  a  special  Germnii 
section  for  use  on  these  steel  ties;  its  weight  is  about  60  pounds, 
with,  however,  a  head  and  girder  stiength  probably  equivalent  to  7(i 
pounds  A.  H.  E.  A.  section.  All  the  track  materials  are  of  typical 
German  standard,  and  so  far  the  Japanese  have  made  little  chaiii^o 
in  the  way  of  renewals  or  additions — one  reason  being  that  there  was 
a  very  considerable  supply  of  most  parts  in  stock  when  the  Japanese 
assumed  control. 

As  already  mentioned,  all  the  stations  and  other  buildings  on  this 
line  are  of  very  substantial  construction  and  in  many  cases  of  ornate 
design.  All  structures  are  permanent  and  adequate  except  as  regards 
the  loading  capacity  of  the  bridges,  and  also  the  turntables,  which  are 
not  capable  of  turning  heavier  engines  than  those  now  in  service. 

ROLLING  STOCK. 

All  the  original  rolling  stock  conforms  in  general  to  the  German 
practice  and  came  from  German  manufacturers.  The  present  equip- 
ment consists  of  53  locomotives  (3  of  which  were  recently  furnished 
l)y  an  American  locomotive  company),  85  passenger  cars,  and  1,227 
freight  cars  of  all  classes.  In  September,  1917,  the  Japanese  manage- 
ment had  under  way  negotiations  for  buying  several  additional 
American  locomotives,  but  they  were  having  serious  difficulty  in 
obtaining  them. 

Figures  2S  and  29,  facing  page  132,  show  a  typical  covered  four- 
wheel  goods*  car  and  a  caboose,  part  of  which  is  used  for  handling 
package  and  express  freight.  An  unusual  feature  of  the  caboose, 
from  an  American  viewpoint,  is  the  running  board  for  the  crew  to 
go  along  the  side  of  the  car  instead  of  over  the  top.  Figure  30  sho^\^ 
a  low-side  gondola  with  the  old-style  buffers  and  safety  chains,  with 
the  new  automatic  coupler  of  American  manufacture  installed  by  the 
Ja|)anese  since  they  took  over  operation  of  the  line.  The  lower 'illus- 
tration on  the  same  plate  shows  a  special  four-wheel  car  for  handlino- 
bulk  lime.  The  writer  was  very  much  impressed  witli  the  utihty  o1 
tins.  It  will  be  noticed  that  the  side  buffers  on  this  car  have  been 
removed  since  the  installation  of  the  automatic  couplers. 

WORKSHOPS. 

There  are  well-equipped  shops  of  moderate  size  for  the  making  of 
all  classes  of  repairs  to  the  rolling  stock.  These  shops  are  located  a 
short  distance  from  the  Tsingtau  terminal.  There  are  also  anijile 
engine  houses  and  equipment  facilities  along  the  line,  particularly  at 
all  engine  terminals.  One  feature  in  this  connection  with  which"  the 
writer  was  particularly  impressed  was  the  substantial  and  adequate 
water-station  facilities  provided. 

ORGANIZATION  AND  MANAGEMENT. 

Since  the  capitulation  of  the  German  garrison  of  Tsingtau  in  Decem- 
ber, 1914,  the  operation  of  this  railway  has  been  under  the  adminis- 


ii 


u 


m.i 


^i 


<l 


,,.« 


i< 


BAIL  WAY  MATEBIALS,  IQtJIPMEFT,  AHD  SUPPLIES. 

tration  of  tlie  Japanese  military  garrison  of  Tsiiigtau.  October  1, 
1917,  the  arraegemeiit  was  moclified  by  the  institution  of  what  was 
termed  a  Civil  Administration  of  the  Railway  Department,  which, 
liowever,  is  still  under  the  general  administration  of  the  militftr\' 
authorities.  This  organization  is  very  complete  and  deserves  careful 
study  from  the  standpoint  of  its  thoroughness  and  comprehensiv*^^- 
uf^ss.  Two  points  that  merit  particular  attention  are,  first,  the  inclu- 
sion of  the  mining  operations  under  the  direction  of  the  Railway 
Departmeut;  and, second,  the  provision  of  a  ^'Bureau  of  Traffic  Coii- 
troL"  This  latter  represents  a  partial  step  toward  the  commerciiil- 
izing  of  the  railway,  but,  as.  this  bureau  also  has  charge  of  the  station- 
operating  forces,  it  is  not  a  distinctly  separate  branch,  like  the  traflic 
department  of  our  American  railways.  This  organization,  like  that 
of  the  South  Mancliuria  Railways  (see  p.  196),  shows  the  careful  and 
painstaking  arrangements  that  the  Japanese  have  taken  to  insure  suc- 
cess. The  following  is  a  carefully  made  translation  of  the  Japanese 
text  of  the  military  ordinance  of  October  1, 1917,  putting  into  effect 
these  regulations : 

Article  I.  The  following  five  bureauB.  shall  be  eetablislied  in  the  Railway  Depart- 
ment of  the  Department  of  Civil  Administration  in  the  Tsinstau  Army  headquarters 
and  a  chief  shall  be  appointed  in  each  bureau:  Bureau  of  general  affaire;  traffic  con- 
trol; operation;  engineering;  finance. 

Art.  II.  The  bureau  cMefa  ahall  be  appointed  from  railway  secretaries  or  railway 
enj^meers,  and  they  shall  control  their  respective  affniw,  supervising  their  staffs 
nnder  the  direction  of  the  Director  of  tlW'  .Rmlway  Depiylaient. 

Art.  III.  The  bureau  of  general  affatm  iludl  have  cmt§B  of  the  following  business: 
(1)  Confidential  mattew;  (2)  pereonnel;  (3)  correspondence,  compilation  of  rules,  etc.; 
(4)  investigations  and  statistics;  (5)  assignment  ot  quarters;  (6)  training  of  employees; 
(7)  l«iaing  of  houses  and  lands;  (8)  all  matters^  not  included' in  the  functions  of  other 
bureaus. 

Art.  IV.  The  bureau  of  traflSc  control  shall  have  charge  of  the  following  businesg: 
(1)  Traffic  on  the  railways;  (2)  distribution  of  cars;  (3)  warehousing. 

Art.  V.  The  bureau  of  operation  shall  have  charge  of  the  following  busineas:  (1) 
Operation  of  trains;  (2)  correspondence  relating  to  operation;  signaling;  and  conduct 
of  railway. 

Art.  \1.  The  bureau  of  engineering  ahall  have  charge  of  the  following  business: 
(1)  New  comtruction  and  repaire;  railway,  and  buildings;  (2)  operation  of  electric 
power  houses  for  railway  puroosee;  (3)  control,  of  lands  and  buildmgs  in  railway  use. 

Art.  VII.  The  bureau  ol  finance  shall  have  charge  of  the  following  business:  (1) 
Preparation  of  the  budget  and  the  settlement  of  accounts;  (2)  receipt  and  disburse- 
ment of  casli  and  properties  and  custody  tliereof ;  (3)  purchases  of  materials  and  dia- 
bursements  in  connection  therewith;  (4)  inventories  of  properties. 

Art.  VI 1 1.  The  wharf  office  shall  be  eatabliahed  within  the  Railway  Department 
and  shall  have  charge  ol  the  docking  and  clearing  of  vessela,  the  loading  and  unload- 
in?  of  cargo,  and  control  of  tlie  wharvea  and  properties  co^nnected  therewith. 

Art.  IX.  A  workshop  shall  be  established  in  the  Railway  DepiVtment  and  shall 
ha\-e  cliarge  of  the  designing  of  rolling  stock  and  machinery  and  the  construction 
and  repairing  thereof. 

Art.  X.  The  bureau  of  mines  shall  be  established  within  tlie  Railway  Department. 
It  shall  be  compoaed  of  three  sections,  (1)  busineas,  (2)  excavation,  and  (3)  sale, 
which  ahall  have  cliai^©  of  such  matters  m  underground  work  in  the  mines,  allied 
Manufacturing  industries,  sale  of  products,  and  control  of  tlie  properties. 

Art.  XL  The  details  of  the  organization  and  operation  of  tne  different  bureaus, 
the  wharf  office,  the  workahop,  and  the  bureau  of  mines  ahall  be  determined  by  the 
direr- tor  of  the  Railway  Department  with  the  aanction  of  the  commander  in  chief  of 
the  'I'singlau  garriacjE,. 

For  a  directory  of  the  heads  of  these  bureftiis,  see  page  268. 


ch:in"a. 


135 


PURCHASES. 

r«n  Z.C  if  ii*'  financial  bureau-has   charge  of  the  purchase   a,„l 

DrJ^  r  t  ^fhlt  ?5 "'•.  ^V'.''*  *''^  """**  ^^■'  ^*'«'*"i  arrangement.  At 
p4?r  thl™  1  ^^"'^f'i  tendency  to  purcliase  requirements  wher- 
ever they  can  be  secured  to  the  best  advantage.    No  doubt,  however 

condffinnJ  T  "'iT''^  ?^  present  conditions;  upon  a  retum'to  Trmal 
conditions  decided  preference  will  probably  be  given  to  purcha.ses 
irom  Japanese  sources— at  least  as  long  as  Japanese  control  of  thi^ 
railway  is  maintained.  ./"pauese  control  ot  this 


CHINA. 


nriTii  A 'mjrnr' A  VQ 

DfTlODUCnON. 

'Tlie  name  tramwiiy  is  used  in  fcliis  report  for  the  reason  that  this 

is  the  preTailing  term  for  this  class  of  railways  in  all  parts  of  the 
Far  East..  The  number  of  tramway  in  Oiina  is  very  small,  there 
heiiig  onlv  eight  sets  of  lines  altogether,  induding  two  in  Manchuria. 
With  one  exception,  all  these  are  located,  either  partly  or  wholly, 
in  foreiei  concessions.  The  exception  is  the  tramway  in  the  Chinese 
city  of  Shanghai,  which  has  much  of  the  characteristic  environment 
of  a  foreign  settlement.  Of  the  two  tramwa)^  in  Manchuria,  one  is 
the  Japan»e  tramway  at  Dairen,  operated  as  a  section  of  the  South 
Manchuria  Railway,  and  the  other  is  a  horse  tramway,  about  4 
miles,  long,  in  the  outside  city  and  Japanese  concession  at  Mukden. 
These  wiU,  be  referred  to  later  in  connection  with  the  Manchurian 
group  of  railways. 

Of"  the  other  six  tramways.,  one  is  the  system  in  the  several  con- 
cessions at  Tienisin.  The  second,  third,  and  fourth  are  the  tram- 
wajrs  in  the  municipal  district  of  Shanghai,  the  French  concession  of 
Shanghai,  and  the  native  city  of  Shanghai.  The  fifth  and  sixth  are 
the  ordinary  tramway  at  Hongkong  and  the  Peak  Line,  also  in  Hong- 


Tiiese  several  situations  will  be  referred  to  in  the  above  order, 
but  in  some  cases  very  briefly,  on  account  of  the  relatively  small 

amount  of  time  that  the  writer  was.  able  to  devote  to  the^  subject  of 
tramways.  Practically  all  fares  on  the  tramway  systems  in  Tientsin 
and  Shanghai  are  collected  in  the  form  of  Chinese  copper  cmU  or 
** small"  silver  money  (both  of  which  are  at  a  substantial  discount) 
and  converted  to  Mexican  dollars  at  an  average  of  about  130  copper 
cents  to  the  dollar  in  Tientsin  and  about  125  copper  cents  to  the 
dollar  in  Shanghai. 

The  riding  on  tramways,  so  far  as  they  exist  .in  Cliina  at  present, 
is  largely  confined  to  the  ordinary  class  of  Chinese.  Wealthy  Chiiu>so 
and  foreigners  of  all,  class..es  are  seldom  seen  in  the  street^ cars,  but, 
as.  a  rule,  travel  in  jinrikishas.  or  other  conveyances.  There  has 
seemed  to  be  a  .growing  tendency  recently  on  the  p.art  of  the  less 
well-to-do  class  of  foreigners  to  ride  in  the  tramway  cars,  particu- 
larly in  Shanghai,  but  the  proportion  of  foreign  passengers  on  all 
lines  is  very  smal  and  practically  aU.  foreigners  ride  first  class. 

THOTSIN  TBAMWAYS. 

The  Tientsin  tramw.ays  are  operated  by  the  Compagnie  de  Tram- 
wms  et  d''ficlaira|;e  de  Tientsin,  Social  Anonyne,  with  headquarters 
iii  ""Bruss..els,  Belgium.  There  are  .about  8.2  m,iles  of  this  system, 
located  in  the  French,  Japanese,  Russian,  Italian,  and  Austrian^  set- 
tlements. Service  was  first  estabhshed  in  1906.  The  track  is  of 
meter  gauge,  and  the  rail  is  all  grooved  girder  weighing  46  kilos  per 

134i 


meter  (92.8  pounds  per  yard).  One  particularly  interesting  feature 
of  the  construction  of  this  track  is  the  fact  that  no  ordinary  ties 
(sleepers)  are  used,  but  that,  instead,  the  girder  rails  are  laid  on 
beds  of  broken  stone  15  inches  deep  and  18  inches  wide.  The 
rails  are  held  together  with  12  tie  rods  for  each  set  of  raUs  18 
meters  (59  feet)  l()ng,  or  one  tie  rod  for  each  5  feet.  These  tie  rods 
are  very  robust  and  securely  fastened  to  the  web  of  the  raU.  After 
having  had  this  construction  explained,  the  writer  took  particular 
notice  of  the  line  and  surface  of  this  track  at  different  points  and 
was  much  surprised  at  its  good  average  condition,  which  seemed  to 
confirm  the  statement  of  Mr,  Gaillard  (the  general  manager)  with 
regard  to  the  satisfactory  results  given  by  this  construction. 

The  rolling  stock  consists  of  64  double-motor  trolley  cars  and  50 
trailers,  all  of  Belgian  design  and  manufacture.  Figures  32  and  :i3 
show  a  motor  trolley  car  and  the  ends  of  two  trailers.  This  company 
also  furnishes  the  electric  power  for  Tientsin.  The  total  capital  is 
6,250,000  francs  ($1,206,250  United  States  currency).  This  invest- 
ment is  about  equally  divided  between  the  tramway  and  electric 
plants.  The  gross  tramway  earnings  for  1915  amounted  to  64,524,183 
copper  cents,  which,  reduced  to  Mex.  dollars  at  an  average  of  130 
cents  to  the  dollar,  made  about  $496,800  Mex. 

First-class  and  second-class  fares  are  charged  to  men,  but  Chinese 
women  are  allowed  to  ride  first-class  by  payment  of  second-class  fare. 
The  second-class  passengers  are  handled  almost  entirely  in  the 
traOers.  Practically  all  foreigners  ride  first-class  when  they  ride  at 
all.  All  rides  are  on  a  single-fare  basis.  Part  of  the  lines  have  a 
2-copper-cent  fare,  the  maximum  distance  being  3  kilometers,  or 
about  1.9  miles.  On  the  other  routes  3-copper-cent  fares  are  charged 
for  a  maximum  ride  of  5  kilometers,  or  about  3.1  miles.  One  very 
interesting  feature  of  this  system  is  that  the  amount  of  travel  varies 
with  the  <}haracter  of  the  season  and  the  day.  On  fair  days  tiie 
daily  collection  averages  about  250,000  copper  cents,  but  on  wet, 
disagreeable  days  the  collection  sometimes  falls  below  100,000  copper 
cents.  These  figures  seem  to  indicate  that,  notwithstanding  the  in- 
dustrious habits  of  the  Chinese,  a  very  large  part  of  the  riding  of 
these  lines  is  for  pleasure  (or  at  least  convenience)  rather  than  travel 
to  and  from  work. 

This  is  purely  a  Belgian  concern;  all  materials  and  equipment  con- 
form, in  general,  to  Belgian  practice  and  are  usuaJJy  of  Belgian  manu- 
facture. A  good  many  purchases  are  made  from  concerns  m  Tientsin, 
and  at  present  requirements  are  bought  from  whatever  source  they 
can  be  secured;  but,  upon  the  return  of  normal  conditions,  no  doubt 
preference  will  again  be  given  to  materials  from  Belgian  sources  when 
these  are  again  available. 

SHANGHAI  TRAMWAYS. 

The  lines  of  the  Shanffhai  Electric  Construction  Co,  (Ltd.)  are 
located  in  the  foreign  settlements  (except  the  French)  in  Shanghai— 
or  what  is  otherwise  known  as  the  International  Settlement  of 
Shanghai,  The  total  length  of  the  route  is  about  16.45  miles  of  rail 
lines  and  1  mile  of  railless  trolley. 

All  the  tracks  of  this  company  are  substantially  constructed  and 
well  maintained.    The  rolling  stock  consists  of  90  motored  trolley 


If 

r 


138 


RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


cars,  70  trailers,  and  7  railless  trolley  cars.  Part  of  the  power  is 
generated  in  the  company's  own  powerhouse  and  part  is  purchased 
irom  outside. 

The  total  share  capital  of  the  company  is  £320,000.  For  the  year 
ended  December  31,  1917,  there  was  a  net  profit  of  £49,510  and, 
after  the  appropriation  of  £10,000  for  renewals  and  £5,000  for  writing 
down  the  preliminary  expenses  account,  10  per  cent  dividends  were 
paid  on  the  above  snare  capital.  These  results  show  the  possibili- 
ties of  tramways  in  C^iiina  where  the  developments  are  followed  up 
from  year  to  year  by  capable  and  enterprising  management. 

First  and  third  class  (no  second-class)  fares  are  charged,  but 
Ciiinese  women  ride  first-class  on  payment  of  third-class  fare.  There 
is  an  arrangement  of  zone  fares,  the  first-class  fare  for  each  zone 
being  3  copper  cents.  When  fares  are  collected  passengers  are  given 
a  special  number  and  colored  slip.  There  are  frequent  instances  of 
"surprise"  checking  by  special  inspectors,  as  a  part  of  a  very  care- 
fully worked-out  and  maintained  scheme  to  elimmate  ' 'squeeze,"  or 
**  graft."  It  is  claimed  that  this  has  been  reduced  to  a  very  low 
point  by  the  arrangement  indicated. 

There  is  at  present  a  very  successful  and  well  organized  raUless 
trolley,  with  a  route  of  a  little  more  than  a  mile,  rSnning  through 
a  very  congested  district.  The  service  was  first  established  in  1915 
over  a  route  of  about  seven-tenths  of  a  mile,  and  was  extended  in 
1916  to  the  present  length.  This  service  was  objected  to  at  first  by 
the  municipal  police  authorities,  who  give  a  great  deal  of  attention 
to  keeping  traffic  moving  in  the  congested  districts  of  Shanghai;  but 
as  a  result  of  the  successful  operation  of  this  equipment  their  attitude 
has  become  favorable  and  the  Municipal  Council  has  been  consider- 
ing a  proposal  for  a  very  considerable  extension  (about  9  miles)  of 
this  railless  trolley  service. 

Figures  34  ancf  35  show  two  views  of  these  railless  trollev  cars. 
In  the  statement  presented  to  the  municipal  council  the  claim  is 
made  that  these  cars  occupy  an  area  of  158  square  feet  while  28 
jinrikishas  carrying  the  same  number  of  passengers  would  occupy 
2,500  square  feet  to  permit  of  proper  movement.  This  means, 
practically,  that  at  least  two  of  these  railless  trolley  cars  would 
nave  ample  running  space  in  one  of  these  narrow  streets  and  still 
permit  the  movement  of  other  traffic,  whereas  the  28  jinrikishas 
would  completely  occupy  the  street  without  allowing  other  traffic 
to  move.  The  average  cost  of  the  seven  cars  now  in  service  was 
about  $12,850  Hex.  for  each  complete  equipment,  and  the  actual 
cost  of  the  present  instaHation,  including  the  double  trolley,  was 
1137,575  Mex.,  which  included  a  contribution  of  $26,022  Mex.  for 
street  paving.  As  no  additional  land  or  buildings  were  added  to 
the  general  plant,  an  arbitrary  amount  of  $10,000  Mex.  was 
added  for  determining  return  on  capital.  The  detailed  working 
ex|>eiisos  have  been  very  carefully  watched,  and  the  results  for  the 
last  half  of  1916  show  a  profit  of  about  15  per  cent  on  the  investment. 

The  tire  renewals  were  estimated  at  $0.03  Mex.  per  car  mile, 
but  have  since  been  determined  as  less  than  $0,024  Mex.  The 
mileage  for  tires  will  average  more  than  25,000  per  tire;  the  mmimum 
so  far  has  been  18,000  and  the  maximum  almost  50,000  miles.  The 
weight  of  the  complete  outfit  (no  load)  is  about  8,400  pounds. 
Motors  are  20  horsepower  and  have  been  found  ample.    The  power 


special  Agents  Series  No.  180. 


FIGS.   32  AND  33.— TRAMWAY  CARS  AND  TRAILERS,  TIENTSIN. 

Notice  pantagraph  contact. 


INTENTJONAL  SECOND  EXPOSURE 


B 


(^ 


138  BAILWAY   .MATERIALS,  EQUIPMEXT,   A:N,D  Sl'PPLIES. 

cars,  70  trtulcrs,  and.  7  riiilless  trolley  cars.  Part  of  tho  ])owcr  is 
j^eneniteil  in  the  com j) any" s  own  powcrlioiiso  and  part  is  purchased 
from  oiitsitle. 

The  total  share  capital  of  the  coni})any  is  £320,000.  For  the  year 
ended  DeccMnber  31,  1917,  there  was  a  net  profit  of  £49,510  and, 
after  the  appropriation  of  £10,000  for  renewals  and  £5,000  for  writiiiji^ 
down  the  pi*«  liininary  ex|)oiise3  account,  10  per  cent  dividends  were 
l>aid  on  tlie  above  share  capital.  Tiiese  results  show  tlie  p!:)ss!l)iii- 
ties  of  trarnways  in  CiUiia  where  the  developments  are  followed  up 
from  year  to  year  by  (;a{>al)h:5  and  enterprisinoj  inanaji^ement. 

Fii'st  and  third  class  (no  second-class)  fares  are  charged,  but 
(■'hiiiese  women  ride  first-class  on  payment  of  third-class  fare.  Tliere 
is  an  arran^ijeinenfc  of  zone  fares,  tlie  first-class  fare  for  each  zone 
bein^  :■■>  cof)per  cents.  Wlien  fares  are  collected  passengers  are  given, 
a  special  number  and  colored  slip,  lliere  are  frequent  instances  of 
**  surprise"  checking  by  special  inspectors,  as  a  part  of  a  very  care- 
full  \'  worked-ont  and  maintained  scheme  to  elimniate  ''squeeze,''  or 
* 'graft."  It  is  claimed  that  this  lias  been  reduced  to  a  very  low 
pi  tint  by  the  arrangement  indicated. 

Tiiere  is  at  present  a  vi^ry  successful  and  well  organized  railless 
trolley,  witli  a  route  of  a  little  more  than  a  mile,  running  through 
a  verv  cotiiic-tcd  district.  The  service  was  firet  establislied  in  1915 
over  a  route  of  al)out  seven-tenths  of  a  mile,  and  was  extended  in 
1916  to  t^tie  i>i-esent  length.  This  ser\  ice  was  objected  to  at  first  by 
tlie  municipal  police  authorities,  who  give  a  gi'cat  deal  of  attention 
to  kee|>ing  trafli(!  moving  in  tlie  cong(\sted  districts  of  Shanghai;  but 
as  a  result  of  tlie  succe-?sful  operation  of  this  equinment  their  attitude 
lias  become  favoraldt^  and  tlie  Muni<  i}>al  Council  has  been  consider- 
ing a  proposal  for  a  very  considerable  extension  (about  9  miles)  of 
til  is  railless  trolley  service. 

Figiu'cs  ;] 1  and  35  show  two  views  of  tliese  railless  trolley  cars. 
In  tlie  statement  presented  to  the  municipal  council  the  claim  is 
iiiacle  that  these  cars  occupy  an  area  of  158  square  feet  while  28 
jini'ikislias  carrying  tlie  same  number  of  passengei's  would  occupy 
2,500  square  feet  to  ])ermit  of  ])roper  movement.  This  means, 
practically,  that  at  least  two  of  tliese  raiEess  troEey  cars  wouhl 
Iiave  ample  running  space  in  one  of  tliese  narrow  streets  and  still 
permit  the  movement  of  other  traffic,  whereas  tlie  28  jinrikislias 
would  completely  occupy  the  street  without  allowuig  othei'  traliic 
to  move.  The  average  cost  of  the  seven  cars  now  in  service  was 
aliout  $12,850  Mex.  for  each  complete  equipment,  and  the  actual 
cost  of  tlie  i)resent  installation,  including  the  double  trolley,  was 
$137,575  Mex.,  which  included  a  contribution  of  S26,022  Mex.  for 
strcH't  ])aving.  As  no  additional  land  or  buildings  were  added  to 
t'!(»  gciK^ral  plant,  an  arbitrary  amount  of  SI 0,000  Mex.  w^as 
ail<l(Ml  for  determining  return  on  capital.  The  detailed  working 
ex|>eiis{»s  have  been  \-er\^  carefully  wtitclied,  and  the  results  for  the 
last  lialf  of  1916  show  a  profit  of  about  15  per  cent  on  the  investment. 

The  tire  renewals  were  estimated  at  $0.03  Mex.  per  car  mile, 
but  liave  since  been  determined  as  less  than  $0,024  Mex.  The 
mileage  for  tires  will  average  more  than  25,000  per  tire;  the  minimum 
so  far  has  been  18,000  aiui  the  maximum  almost  50,000  miles.  The 
weight  of  the  complete  outfit  (no  load)  is  about  8,400  pounds. 
Motors  are  20  horsepower  and  have  been  found  ample.     The  power 


Special   Agents  Series  No.  180. 


FIGS.   32  AND  33.— TRAMWAY  CARS  AND  TRAILERS,  TIENTSIN. 

Notice  pantagraph  contact. 


I! 


I 


till 


CHINA. 


139 


Special  Agents  Series  No.  180. 


consumption  is  about  0.8  of  a  kilowatt  hour  per  mile.  The  cost  of 
power  is  $0.0308  Mex.  per  kilowatt  hour.  The  electrical  equipment 
and  most  of  the  materials  for  these  seven  cars  were  purchased  in 
England  and  were  erected  under  General  Manager  McColl's  direc- 
tion in  Shanghai.  This  railless  trolley  system  is  the  most  successful 
installation  of  the  kind  that  the  writer  ever  investigated. 

The  management  of  this  system  is  entirel3r  British,  and,  while  a 
good  many  of  the  requirements  are  purchased  in  Shanghai,  preference 
IS  undoubtedly  given  to  materials  from  British  sources.  A  directory 
is  given  on  page  268. 

HONGKONG  TRAMWAYS. 

The  Hongkong  Tramways  Co.  (Ltd.)  operates  a  system  of  well 
maintained  and  managed  tramways  extending  from  one  end  of  the 
city  of  Victoria  to  the  other,  either  on  or  near  the  water  front.  The 
city  is  stretched  out  for  several  miles  on  the  island  of  Hongkong 
between  the  high  ground  and  the  harbor. 

For  the  year  1917  the  profits  from  operations,  after  liberal  de- 

S-eciation  charges  had  been  deducted,  amounted  to  $248,915  (gold), 
ebenture  interest  totaled  only  $33,575,  and  $33,585  was  paid  aa 
an  interun  9  per  cent  dividend,  leaving  the  handsome  amount  of 
$179,755.  This  was  added  to  the  previous  surplus  balance  and  made 
the  total  accumulated  surplus  balance  $261,050,  from  which  it  was 
proposed  to  pay  an  additional  3  per  cent  dividend,  making  a  total 
of  12  per  cent  on  the  share  stock. 

During  June,  1917,  General  Manager  and  Chief  Engineer  J.  J.  S. 
Kennedy  made  a  visit  to  Japan  to  mvestigate  the  procurement  of 
immediately  needed  supplies,  but,  so  far  as  could  be  learned,  he  made 
no  purchases  other  than  those  to  meet  the  present  running  require- 
ments.^ The  occasion  for  this  arrangement  was  the  impossibility  at 
that  time  of  supplying  these  requirements  from  any  other  source. 

A  directory  of  the  officials  of  this  system  is  given  on  page  268. 

PEAK  TRAMWAYS. 

The  Peak  Tramways  at  Hongkong  are  what  would  be  called, 
around  Pittsburgh,  an  "incline."  The  service  rendered  is  the  con- 
veying of  passengers  by  cable  incline  lift  from  a  station  near  the  foot 
of  the  slopes  to  a  pomt  a  considerable  distance  up  on  the  higher 
ground,  the  highest  point  of  which  is  known  as  the  Peak.  The 
Peak  is  about  2,600  feet  above  sea  level,  and  in  this  district  there 
are  many  residences  and  a  large  hotel. 

The  management  of  this  concern  is  strictly  British.  A  directory 
is  given  on  page  269. 


FIGS.  34  AND  35.— RAILLESS  TROLLEY  CARS  IN  SHANGHAI. 


INTENTIONAL  SECOND  EXPOSURE 


Special'  Agents  Series  No.  180. 


FIGS.   34  AND  35.— RAILLESS  TROLLEY  CARS   IN   SHANGHAI. 


I! 


CHINA. 


139 


consumption  is  ahout  0.8  of  a  kilowatt  hour  per  milo.  Tho  cost  of 
power  is  $0.0308  Mex.  ])er  kilowatt  hour.  The  electrical  equipment 
and  most  of  the  materials  for  these  sev(Mi  cars  wei-c  purcliased  in 
Eno-land  and  were  erected  under  General  Manai^^er  McCoU's  direc- 
tion in  Shanghai.  This  railless  troll(-v  system  is  the  most  successful 
installation  of  the  kind  that  the  writer  ever  investigated. 

The  manaorement  of  this  system  is  entirely  British,  and,  while  a 
good  many  of  the  requirements  are  ])urchased'in  Slianghai,  prefereiii-e 
is  undoubtedly  given  to  materials  from  British  sources.  A  directory 
is  given  on  page  268. 

HONGKONG  TRAMWAYS. 

Tlie  Hongkong  Tramways  Co.  (Ltd.)  operates  a  S3^stem  of  well 
maintained  and  managed  tramways  extending  from  one  end  of  the 
city  of  Victoria  to  the  other,  cither  on  or  near  tlie  water  front.  Tlio 
city  is  stretched  out  for  several  miles  on  the  island  of  Hongkong 
between  the  high  ground  and  the  harbor. 

For  the  year  1917  the  profits  from  o])cratiuns,  after  liberal  de- 
preciation charges  had  been  deducted,  amounted  to  $248,915  (gold). 
Debenture  interest  totaled  only  $33,575,  and  $33,585  was  paid  as 
an  intcrmi  9  per  cent  divick^ncl,  leaving  the  handsome  amount  of 
$179,755.  This  was  added  to  the  ])revious  surplus  balance  and  made 
the  total  accumulated  surplus  balance  $261,050,  from  wdiich  it  was 
proposed  to  pay  an  additional  3  per  cent  dividend,  making  a  total 
of  12  per  cent  on  the  share  stock. 

^During  June,  1917,  General  Manager  and  Chief  Engineer  J.  J.  S. 
Kennedy  made  a  visit  to  Japan  to  investigate  the  ])rocurement  of 
immediately  needed  supplies,  but,  so  far  as  could  be  learned,  he  made 
no  purchases  other  than  those  to  meet  the  present  running  require- 
ments.^ The  occasion  for  this  an-angement  was  the  impossibility  at 
that  time  of  supplying  these  requirements  from  any  other  source. 

A  dh^ectory  of  the  ollicials  of  tliis  system  is  given  on  page  268. 

PEAK  TRAMWAYS. 

The  Peak  Tramways  at  Hongkong  are  what  would  be  called, 
around  Pittsburgh,  an  ''incline."  The  service  rendered  is  the  con- 
veying of  passengers  b;^^  cable  incline  lift  from  a  station  near  the  foot 
of  the  slopes  to  a  point  a  considerable  distance  u])  on  the  higher 
ground,  the  higliest  point  of  which  is  known  as  the  Peak.  The 
Peak  is  about  2,600  feet  above  sea  level,  and  in  this  district  there 
are  many  residences  and  a  large  hotel. 

The  nianagement  of  this  concern  is  strictly  British.  A  directory 
is  given  on  page  269. 


ii 


f'i 


i 


^^ 


Part  2.-  JAPAN. 


INTRODUCTION. 

The  Japanese  railways  are  taken  up  in  this  place,  instead  of  the 
Korean  and  the  Manchurian,  on  account  of  the  Japanese  control  of 
the  Korean  railways  and  also  of  all  the  Manchurian  railways  except 
the  Chinese  Eastern  and  the  Tsitsihar  Light  Railway.  This  state- 
ment is  intended  to  cover  the  Kirin-Changchun  and  the  Ssupingkai- 
Chengchiatun  lines,  nominally  Chinese  Government  railways  but 
actually  under  Japanese  control  and  management. 

"While  American  manufacturers  have  in  the  past  furnished  the 
Japanese  railwavs — both  in  Japan  proper  and  in  Korea  and  South 
Manchuria — ^with  a  very  considerable  amount  of  railway  materials, 
equipment,  and  suppHes,  it  is  the  writer's  opinion  that,  in  the  future, 
while  the  United  States  will  continue  to  supply  all  these  lines  with 
a  very  substantial  share  of  their  requirements,  this  will  be  entirely 
because  of  the  elements  of  cheapness,  maximum  convenience  in 
purchasing,  and,  in  certain  cases,  superior  quality.  The  business  will 
be  transacted  very  largely,  however,  through  Japanese  concerns  with 
highly  organized  branches  in  this  country.  A  considerable  part 
of  the  profit  will  thus  go  to  Japanese  interests,  even  to  the  extent  of 
the  shipments  going  in  Japanese  bottoms.  Not  only  will  Japanese 
railways  be  our  customers  only  when  it  is  most  convenient  for  them 
to  so  arrange  their  purchases,  but  State-aided  Japanese  manufacturers 
of  railway  materials  and  equipment,  in  Japan  proper  and  South 
Manchuria  and  possibly  parts  of  China,  will  be  active  competitors. 
They  will  be  assisted  in  their  efforts  by  their  cheap  supply  of  labor 
and  cheap  sources  of  materials. 

At  this  point  it  seems  proper  to  quote  from  the  annual  report  of 
the  Imperial  Government  Railways  of  Japan  for  the  year  ended 
March  31,  1915,  which  states  as  follows: 

Shrinkage  op  Foreign  Purchase. 

The  attention  of  the  authorities  had  long  been  directed  to  the  importance  of  super- 
Bading  imports  by  home  products.  Apart  from  the  growth  of  domestic  industry 
which  has  gradually  come  to  meet  the  multifarious  requirements  of  railways,  the  policy 
of  self-sufficiency  had  recently  begun  to  recommend  itself  with  greater  urgency  than 
ever  in  view  of  the  conditions  surrounding  Japanese  finance  and  economy  in  general. 
The  best  endeavors  have  therefore  been  used  in  this  particular  direction,  with  the 
result  that  the  amount  of  foreign  purchase  has  markedly  been  decreased. 

The  table  following  shows  foreign  purchases  by  the  Imperial 
Government  Railways  for  the  years  ended  March  31,  from  1911  to 
1917,  inclusive- 

141 


f» 


142  BAILWAY  MATERIALS,  EQ:i:iPMEKT,  A:ND  SUPPLIES. 


Y«ra 

Home 

purc-liaaea. 

Foreign 
piirciiaMS. 

Total. 

Proportion 

of  foreign 

purchases 

to  total. 

191ft-ll ,.. 

lflll-12 

1912-13., 

1913-14 , ; .'" 

1914-15... , , '. 

11M.V16 , , '     ■*'" 

1916 17 llllll'.l'.l'.'. 

1 

Ii:i,9f'i4,f«» 

1fi..SlK,080 
!\  071,301 

l.'j,««0,(167 
18,9!1.1,I»| 
17, 1H8,784 

18, 9.>5,  S5.S 

»,252,ft13 
3,649,118 
3,025,658 

1,444,387 

-SOI,  991 

1,6(H,578 

2,595,214 

117, 216,  M2 
20,4.M,198 
21,096,959 
16, 474; 444 
19,798,075 
18,773,362 
21,551,072 

Per  cmt 

18.9 

17.8 

,14.3 

&8 

4.1 

:as 

12.4 

'Tlic  principal  items  purcliasccl  in  1914-15  were  m  follows:  Wheels 
aiicl  axles  for  vehicles,  f273,6;i5;  fieisliod,  steel  girdere,  $138,346; 
electric  macliines  and  materials,  $104,036;  copper  wii-e  and  No.  8 
galYaiiized  wires,  169,332 ;  finished  springs,  $53,795;  tires  for  vehicles 
and  locomotives,  140,780;  iron  and  steel,  $34,373;  tools  and 
machines,  $23,377.  In  1915-16  the  four  largest  items  were:  Steei 
girders,  $1,049,695;  iron  and  steel,  $176,835;  galvanized  iron  wire 
and  copper  wire,  $158,075;  fahrics,  $55,34:0. 

In  view  of  the  conditions  indicated  ahove,  the  purpose  of  this 
report  will  be  not  so  much  %o  point  ont-the  possibilities  of  new  rail- 
way markets  in  Japan  as  to  suggest  steps  to  retain  past  and  present 
mmrkets  and  also,  in  connection  with  Japan,  and  ,Manchnria,  to  point 
oii,t  th,e  possibilities  of  the  com|)etition  which,  in  the  writer's  opinion, 
may  be  ejected  in  the  future  in,  the  other  markets  of  the  Far  East! 
Ill,  a  way  these  points,  appear  to  interest  principally  the  large  concerns 
that  have  clone  ,mo8t  of  the  business  in  the  past,  some  of  which  have 
now  esiabhshed  connections  'with  the  type  of  Japanese  firms  men- 
tioned—such arrangements  providing  tliat  for  a  portion  of  the  busi- 
ness, at  least,  the  ,Jimerican  m,anufacturer  gets  a  fixed  (and  probably 
small)  profit  while  the  Japanese  concern  gets  a  similar  profit  and 
also,  at  times,  a  much.  ,lapger  additional  profit. 

It  does  not  seem  that  the  situation  as  a  whole  warrants  a  very 
extensive  analysis  of  the  Japanese  railways,  but  rather  the  presenta- 
tion of  such  infonnation  as  will  enable  anyone  unfamiliar  with  the 
situation  to  acquire  a  general  understandiiig  of  it.  "In  this  connec- 
tion, however,  it  may  be  stated  that  from  many  standpoints  the 
■p©rform,ance  records  of  'the  Japanese  railways  are  'very  interesting. 
In  some  respects  the  performances  compare  favorably  with  tl,'ioS) 
of  the  American  and  German  railways,  which  admittedly  make  the 
best  showing,  in  their  respective  classes,  of  any  railways  in  the  world. 


if 


I.  GENERAL  INFORMATION. 

In  view  of  the  many  accounts  of  the  Japanese  situation  in  recent 
years,  it  seems  unnecessary  in  this  report  to  make  extended  reference 
otiier  than  to  mattei-s  affecting  transportation  in  general  and  the 
railways  m  particular.  ^  r  &       ^  «*uu  me 

GEOGRAPHICAL  LOCATION  AND  AREA. 

Japan  proper   to  which  tliis  report  refers  (Formosa  and  Saghalien 

ffjATV'^'Y'''^'^^  ^''''-  f^  ^'"'.P^^^  consisting  of  four  principal 
islands-Honshu,  Hokkaido,  Kyushu,  and  Shikoku,  these  betng 
giveii  in    he  order  of  their  areas.     These  and  more  than  500  othe? 

rfhH  q'oaa  "^""^^^"^^^  ^"^y  ^^<^a  of  about  147,700  square  miles, 
or  about  8,000  square  miles  less  than  the  land  area  of  the  State  of 
La  ifornia,  the  second  largest  American  State,  and  only  700  square 
miles  more  than  the  total  area  of  Afontano.  the  third  largest  ^tate. 
However,  the  total  area  of  the  four  main  islands  on  whicff  aU  of  the 
wZ  To  ^^"^^f,  t'^'^y  P?'250  square  miles.  These  islands  lie 
between  31°  and  35.5^  north  latitude  and  between  124^  and  146^ 
6&st  longitUQ©, 

POPULATION'. 

Authorities  seem  to  agree  that  the  present  total  population  of 
Japan  proper  is  now  somewhat  in  excess  of  55,000,000,  or  about 
3/0  pjjople  per  square  mile,  which  Ls  1 1  times  the  density  of  the  present 
population  of  the  Unitetl  States.  There  is,  moreover,  a  KTer- 
centage  of  the  land  m  Japan  on  which  nobody  lives,  and  this  increases 
the  actual  density  of  the  inhabited  regions.  The  statistics  of  the 
Imperial  Government  Eailways  for  the  year  ended  March  31  1917 
pve  the  population  of  the  four  islands  on  which  aU  the  radwavs  are 

h^n™   '  wJ      '"-'^  "^f  "^  l^^'ty^  °^-  ^  classes,  including 
tiamways.     When  one  considei-s  that  there  Ls  a  population  of  only 
^40  for  each  mile  of  steam  raUways  alone  in  the  United  States,  one 
appreciates  the  small  amount  of  railways  in  Japan  per  capita  or 
of  rluwav^    ^*'"**''*"  '^''^  accurately,  the  large  population  jJer  mile 

.       CLIMATE. 

The  climate  of  Japan  is  mild,  on  the  whole,  as  it  is  influenced  bv 
warm  ocean  currents  The  entire  country  receives  L^e  anS  very 
dependable  rainfall    but  at  certain  seasons  very  seriou^  storms  ari 

and  hilhv™?/  *r    '  f  *  '\°'^  f  *"'^  much  damage  to  crops,  railways, 
and  higliways      Construction  to  prevent  damage  by  storim  has  been 


il^^l 


)  ^ 


lAILWAY  MATERIALS,  BQUIPMEMT,  AMD  SUPPLIES. 
AfillCUtlTOlB  AND  PASTORAL  PURS'IJITS. 

'The  Jftpan,  Year  Book  for  1917  estimat«  that  more  than  75  per 
cent  of  the  entire  population  is  occupied  in  agricultural  pursuits. 
It  IS  estimated  that  one  person  cultivates  half  an  acre  and  that  there 
are  five  productive  persons  per  family,  making  the  average  farm  in 
Japan  2|  acres.;  even  in  the  northern  parts  of  the  main  islands, 
where  the  largest  farms  occur,  the  average  is  not  more  than  7i  tijcrm 
per  f amfly. 

Rice  is  a  crop  of  first  importance,  with  harley  and  wheat  next 
During  the  last  seven  years  the  average  crop  of  rice  has  approximated 
265  000,000  bushels,  harley  50,000,000  bushels,  and  wheat  26,000,000 

bushels. 

Pastoral  pursuite  in  Japan  are  incoTOiderable, 

MifllAL  PIOOTJCTION, 

Coal  is  one  of  Japan's  most  valuable  and  dependable  resourc.es. 
Trade  Commissioner  J.  Morgan  Clements,  in  his  report  on  the  mineral 
resources,  of  Japan,  gives  the  available,  reserves  of  all  classes  of  coal 
in  Japan  m  about  8,000,000,000  metric  tons,  of  which  a  very  larm 

Sercentage  is  bituminous.  The  largest  deposits  are  on  the  island  of 
.yushu  and  those  next  in  importance  on  the  island  of  Hokkaido. 
The  production  for  1915  was  about  22,700,000  short  tons  and  for 
1916  about  25,360,000  short  toas.  On  account  of  the  shortage  of 
labor,  this  production  does  not  seem  (from  preliminary  information) 
to  have  been  maintained  in  1917  and  probably  will  not  be  equalled  in 
1918.  More  than  75  per  cent  of  the  present  production  k  from  the 
Jlyushu  fields,  A  considerable  part  of  this  is  from  mines  with  modern 
©€|uipment,  but  there  are  still  a  number  of  mines  worked  by  primi- 
tive Japanese  methods.  Future  railway  construction  will  be  little 
affected  by  the  coal  traffic  except,  probably,  for  the  buOding  of 
some  .additional  mileage  .on  the  North  Island, 

noM. 

■The'  question  of  an  adequate  supply  of  iron  and  steel  is-  Japan's 
greatest  industrial  problem  for  future  solution.  Mr.  Clements  gives 
tlie  probable  consumption  of  .iron  and  steel  for  1917  as  L350  WO  tons 
and  it  is  estimated  tliafc  this  will  probably  be  increased  to  as  much 
as  2,000,000  tons  in  1920.  During  1917  it  is  hardly  likely  that  the 
total  production  of  iion  under  Japanese  control,  includino*  that  from 
Ciiosen, Manchuria,  and  China, exceeded  750,000  tons,  leaving  600  000 
tons  to  come  from,  other  so'urees— principaUv  America.  Japan  is 
undoubtedly  making  a  very  careful  study  of  future  supplies  not 
(wly  of  ffon,  but  of  coal  as  wel,  from  Chosen,  Manchuria,  and  China. 
I  lie  figures  given  by  Mr.  Clements  show  only  about  18,000,000  tons 
of  known  iron  deposits  (estimated)  and  only  about  45,000,000  tons 
of  other  possible  deposits. 

COWrm  AMB  OTHM  MWEBAW. 

^  In  recent  years  Japan's  copper  production  and  its  value  have  both 
increased  very  largely.  Mr.  Clements  gives  the  production  in  1915 
as  mwlj  166,000,000  poundg,  valued  at  $26,700,000  gold.    In  1^16 


JAPAN", 


145 


the  production  was  mcreased  to  more  than  221,000,000  pounds,  and 
tlie  value  increased  to  more  than  $54,700,000  gold. 

It  IS  not  probable,  however,  that  the  production  of  copper  or  anv 
of  the  other  minerals  will  in  the  future  have  any  substantial  effect  on 
tiie  building  of  additional  railways  or  the  traffic  for  the  present  lines. 

GENERAL  MANUFACTURING. 

As  is  doubtless  known  bjr  anyone  interested  in  reading  this  report, 
manufacturing  of  many  kinds  has  made  rapid  progress  in  Japan  in 
recent  years,  particularly  since  the  beginning  of  tlie  war.  is  the 
result  of  his  investigation,  the  writer  was  impressed  in  both  Australia 
and  ef apan  by  the  fundamental  differences  between  those  countries 
and  the  United  States  with  respect  to  the  manufacturing  of  railwav 

3!^-  f  J!"''  P™^'^P^  ^^^  ^  divergence  are  the  privat^ 
ownership  of  the  radways  m  the  United  States  and  the  enterprise  of 
railway-eqmpment  factories  that  depend  solely  on  private  initiative 
ajici  ( apitai* 

The  situation  in  Janan  is  interesting  and  instructive  and  is  verv 
well  covered  by  Dr.  Toshihani  Watarai,  formerlv  assistant  councilor 
m  the  Imperial  Board  of  Railways  of  Japan,  in  his  Columbia  Uni- 
versity study  e^ititled  -Nationalization' of  Railwavs  in  Japan'' 
where  in  the  preface  he  makes  the  following  statcTiiont:  ' 

Altboiigli  ni..8t  ec(>n.,inic  pr<,bleiii8  r;in  in  8:eneral  not  be  ronsidered  apart  from  oth^r 

disniasioiiB   the  probiem  o    railway  nationalization  is  a  partirnlarly  Su  Hne  in 

that  It  ought  to  be  diBriifised  with  equal  care  from  the  point  of  ^-ie^.v  ..f  state  no  lev  and 

national  defenBe,  as  well  aa  from  that  of  economics.    *    *    *    \Vhat  Xn   Z^K« 

economic  conditions  in  Japan?    In  my  opinion,  there  are  two  ^re^  intelectn^and 

phvBicaJ  obsta^^les  m  Japa^  which  have  hitherto  hindered  the  deV^opmen    of  ?to 

economic  life.    They  are  the  lack  of  the  individiialifltic  idea  (or  independent  s^n'S 

of  the  per»p  e  and  the  lack  of  capital.    The  Japanese  people,  who  wore  fwa^on' S 

i^  Jl^«  ^^i«liBtic-8tr.ie  mfluen^^      Biiddliism  and  (i^nfoci.niam^  .^^H  ^  S 

jected  to  the  despotic  pressure  of  the  feudal  system,  have  a  very  weak  indenendonV 

emo  ion  Bo^that  the  economic  life  of  the  nation  has  naturallv  be7n  depre^edT^^^^^^^ 

level     IJ  ndermich  conditions  the  8tate-s.)cid^^^^     idea  spreads  mpidiramon^  thi 

people,     ms  IS  siwwn  by  the  fm  that  most  of  the  great  iriduBtries  ^^/aLHa^f  hel 

started  or  atded  bp  t^e  Goyemment,    The  reader  of  this  dissertation  ivill  re??ke  that  tha 

nationalization  of  the  railways  m  Japan  was  effected  under  such  political  and  economic 

circumstanres.  .  Our  effort  must,  therefore,  be  to  remedy  these  deSslI^^^^^ 

i^ai^muiumm  ^n  /apan-especially  in  the  two  pointe  meiitioned-cmUralts^naZ 

with  those  m  the  United  iStates.  ^^twu«t  sirongiy 

Tliese  remarks  no  douht  ^pply  to  the  Japanese  manufacturino-  sit- 
uatior,  m  general  as  well  as  to  the  railways  in  particular. 

MANUFACTURING  OF  RAILWAY  EQUIPMENT. 

While  the  Imperial  Government  Railways  of  Japan  have  a  numher 
of  extensive  workshops  reasonahly  well  equipped  with  modern 
machinery,  the  general  function  of  these  workshops  is  to  handle  reDiih-s 
to  all  cla.sses  of  equipment  and  materials  rather  than  to  carr/out 
extensive  manufacturing,  although  a  relatively  small  number  of  cai-s 
particularly  good  wagons,  are  manufactured  in  several  of  them' 
Most  of  the  manufacturing  of  rolling  stock,  however,  is  carried  out 
by  eoncej-ns  under  fostering  contracts  from  the  railways.  The 
Ittiperial  bteel  Works  at  the  port  of  Wakamatsu  (near  Moii),  on  the 
Island  of  Kyushu,  nominaUy  supplies  the  iim  and  steel  required  by 

106229''— 19 10 


I 

ill 


.14 


140  EAILWAY   MATERIALS,  BQITIPMENT,  AKD  SUPPLIES. 

tlie  Japtiiiese  railways,  but  at  times,  particularly  since  the  beginning 
of  the  war,  it  has  been  fomnci  convenient  to  buY  a  good  deal  of  the 
iron  and  steel  elsewhere,  especially  in  the  United  States.  Without 
(pestion,  the  above-mentioned  steel  works  can  not  be  considered 
a  really  private  enterprise,  and,  while  possibly  not  directly  a  Gov- 
ernment plant,  it  has  been  as  fully  protected  ni  its  dc\'elopnient  as 
thougli  actually  under  Government  control  and  management.  The 
Kisha  Seizo  Kaisha,  with  works  at  Osaka  and  Tokyo,  is  the  largest 
manufacturer  of  locomotives  and  cars,  and  the  Kawasaki  Dock 
Yards  at  Kobe  are  the  next  largest  manufacturers  of  railway  equip- 
ment; this  latter  company's  production  consists  largely  of 'locomo- 
tives, though  both  companies  produce,  at  times,  a  considerable 
amount  of  structural  materials.  At  the  time  the  writer  was  in  Japan 
these  two  concerns  had  orders  totaling  152  locomotives  for  the 
Government  railways.  In  addition,  tliey  had  contracts  for  a  number 
of  locomotives  for  the  private  and  light  railways.  There  are  also  a 
number  of  smaller  concerns  manufacturing  care— particularly  goods 
wagons  and  tramway  care'~"-for  the  Government  railways  and  the 
private  railways,  light  railways,  and  tramways.  All  these  concerns 
have  been  or  arc  being  developed  In;  fostering  contracts  from  the 
railways,  as  indicated  above  by  'Mr.  Watarai. 


n.  COMMERCIAL  AND  INDUSTRIAL  CONDITIONS. 

DOMESTIC  COMMERCE. 

While  the  amount  per  capita  of  domestic  commerce  is  small,  yet 
for  the  amount  of  railways  it  is  very  considerable  and  consists  of  a 
great  variety  of  articles,  many  of  which  arc  a^icultural  products. 
Shipments  constitute,  for  the  most  part,  what  would  be  tenned  in 
the  United  States  ''classified  business."  The  only  portion  that  is 
handled  on  a  commodity  basis  is  the  coal  traffic,  which  amounts  to 
more  than  50  per  cent  of  all  the  tonnage  handled.  The  average  haul 
in  1916-17  was  99.3  miles,  representing  a  gradual  increase  from  84 
miles  in  1913-14. 

EXPORTS  AND  IMPORTS. 

As  probably  everybody  knows  who  will  be  interested  in  this 
report,  both  the  exports  and  the  imports  of  Japan  have  grown  rapidly 
in  the  last  few  years,  particularly  since  the  begmning  of  the  war.  As 
a  result,  the  amount  of  business  offered  has  been  entirely  beyond  the 
capacity  of  the  railways  to  handle  satisfactorily.  This  has  been 
especiaUy  true  of  the  freight  trafl[ic,  which  in  many  instances  has 
been  badly  congested,  particularly  at  the  principal  ports  and  in  the 
industrial  districts  of  Osaka-Kobe,  Yokohama-Tokyo,  and  Moji. 
The  Japanese  control  of  Pacific  shipping  has  already  very  largely 
increased  reshipping  in  Japanese  ports,  particularly  Kobe. 

TARIFFS. 

The  present  Japanese  tariffs  w^ent  into  effect  July  17,  1911,  and  are 
fully  set  forth  in  the  Bureau  of  Foreign  and  Domestic  Commerce 
Tariff  Series  No.  28,  revised  in  June,  1912.  The  duties  imposed  are 
protective  wherever  there  are  Japanese  manufacturers  to  protect, 
and  this  no  doubt  will  be  the  future  policy  of  the  Japanese 
Government. 

TRADING  CENTERS. 

YoKohama  and  Kobe  are  large  trading  centers  and  are  important 
points  for  export  and  import  business,  but  Tokyo  is  most  important 
from  the  standpoint  of  railway  markets  for  the  reason  that  this  is  the 
headquarters  of  the  Imperial  Government  Railways  of  Japan .  Osaka 
is  also  an  important  trading  center,  being  the  center  of  the  largest 
industrial  and  tramway  district  in  Japan. 

INDUSTRIAL  CENTERS. 


The  largest  all-round  industrial  center  is  the  Osaka  district, 
mcludmg  Kobe,  Kyoto,  and  the  districts  surrounding  Osaka,  Bay. 
Next  in  importance  is  the  Tokyo- Yokohama  district,  including  the 
districts  surrounding  Tokyo  Bay,  but  the  Moji-Shimonoseki  district 
IS  also  very  important  and  has  the  distinct  advantage  of  close  prox- 


147 


148  BAILWAY  MATERIALS,  EQUIPMENT,  AXD  SUPPLIES, 


imity  to  the  fuel 


of  fuel  su 
on  ike  No 
a  steel  plant 


supply  on  the  island  of  Kyuslra.    Tlio  aclTimtages 

,y  also  lead  to  considerable  industrial  developiiient 
k:I,  particularly  at  Mnroran,  near  wliicli  tliere  is  now 
igli  It  can  liardly  be  considered  succass^ful  thus  far). 

INDUSTIIAL  LABOE. 

One  of  the  supposed  aclvantaires  of  Japan  is  the  large  supply  of 
clieirp  and  industrious  labor,  a  discussion  of  which  is ""  beyonil* "  tlio 
scope  of  this  report.  The  witcr,  however-,  is  inclined  to  belicYe  that 
tins  asset^  has  been  aonicwhat  ovemited.  In  the  first  place,  there  is 
not  the  grwit  supply  of  available  labor  that  is  supposed  to  exist.  As  a 
matter  of  fact,,  there  was  a  shortage  of  labor  in  all  the  hca.vy  indua- 
tries  when  the  writer  was  in  Japan  in  1917;  at.  least,  this  was  the 
•cftse  at  the  coal  niines,  at  the  shipping  ports,  and  on  the  railways 
(particularly  in  the  workshops).  As  long  as  the  present  largo 
percentage  of  people  are  occupied  in  agricultn,ral  pursuits,  the 
present  labor  supply  is  not  going'  to  be  materially  augmented. 

In  the  heavier  industries  the  Japanese  labor  is  not  particularly 
capable  nor  are  the  present  methods  of  working  efficient;  but  both 
of  these  conditions  can  and  probably  will  be  improved.  One  feature 
th,at^ini|)re8sed  the  investigator  was  the  number  of  women  employed 
m  tlie  henvy  industri.es,  pBTticularly  coal  mining  and  construction 
woiic.  riie  percentage  of  women  in  railway  work  is  not  nearly  so 
great  as  in  some  other  classes,  of  wo^rk.  In  1917  the  percenta,*^e  of 
w<:»raen  m  railway  employ  was  only  3.35  per  cent  of  the  whole,  nioro 
than  (Mie-lialf  of  them  being  employed  m  lagging  grade  crossings. 

{; ■areful  observat.ion   led  to  the  conclusion   tliat^ the  Japanese  .are 

better  developed  in  tlie  line  of  novelty  iiidust.ries  than  in  heavier 
inanulaeture  and  that  lliis  is  particularly  true  of  electrical  work  in 
wlii'di  coimection  they  also  show  a  deficfed  teclmical  adaptability. 

Ill  ,i^gard  to  the  wages  paid  in,  tlie  heavy  industries,  it  w.as  fmmd 
difhcult,  to  obtain  data  that  would  enable  definite  conclusions  to  bo 
MTived  .at.  Hjwever,  in  such  works  as  the  Kisiia  Seizo  Kaisha  and 
the ^Jitwasaki  Dock  lards,  it  w.as  ascertained  that,  from  1905  to  the 
beginning  of  the  war,  such  wages  as  .$0.20  to  f  0.30  gold  pc^i-  day  were 
paid  for  various  fomis  of  common  labor;  m.ore  or  less  skilled  labor 
.around  jliese  shops  w.as  paid  from  S0.35  to  possibly  10.45,  and  ^rood 
ineclianics  seldoni  received  more  tlian  $0.50  per  day.  These  figiires 
are/Mily  approximate,  and  th.e  wages  seem  to  vary  unaccountal}Iv  in 
diierent  sit.iiat.ion9.  Wages  since  the  bcguming  of  t.he  war  have  lieen 
very  generally  advanced  in,  all  classes  of  heavy  industrial  work,  and 
UBW^iii  the  above  works  varicms  forms  of  common  labor  vaty  from 
ft. .2.3  to  S0.50  (and  probably  higher  for  some  of  the  better  grades  of 
la^lwr).  .Skdled-niechanic  labor  now  varies  all  the  way  from  $0  50 
to  $2  per  day,  although  it  may  be  considered  exceptional  for  wat'-es  to 

*'f «'7, 5/  "50  per  day.    At  .such  points  as  N.agasaki  Harbor,  the  su  p- 

ply  ol  labor  has  been  entirely  inadequate;  wag(«  have  been  generally 
;d()ubled  and  m  some  cases  twbled  or  even  more  largely  incre.ase<l 
Persons  who  were  paid  $0.15  to  10.20  per  day  before  the  war  have 
been  earning  $0.35  to  10.50,  and  in  some  instances  considerably  more 
for  such  work  as  coalnig  ships  on  passage  through  Nagasaki.  Mem 
a  lar^e  number  of  women  are  employed  and  the  labor  demand  and 
supply  are  both  variable. 


JAPAN.  149 

There  are  no  actual  labor  unions  in  Japan,  and  labor  organizations 
as  such  are  in  effect  prohibited.     There  is,  however,  an  organization 
o J?  AAA  **^    V^  Friendly  Society, ''  which  has  about  400  branches  and 
J0,000  members  and  whose  purpose  is  the  general  betterment  of  labor 
conditions.     It  may  be  stated  definitely  that  the  workmen  of  Japan, 
like  those  in  most  rdhcr  parts  of  the  world,  are  acquiring  the  general 
liabit  of  looking  after  their  own  interests  in  a  collective  way.     This 
fact  was  dlustratecl,  to  a  certain  extent,  by  the  obiection  to,  and  effec- 
tive stopping  of,  the  bringing  of  Korean  railway  laborers  to  the  Moji 
district  in  the  early  summer  of  1917.     The  Japanese  manufacturers, 
in  years  to  come,  will  no  doubt  experience  labor  troubles,  but,  not- 
withstanding this,  they  will  be  able  to  take  care  of  many  (if  not  most) 
of  their  own  railway  requirements  in  the  future,  particularly  if  they 
can  secure  the  requisite  raw  materials;  and,  in  addition,  they  wiO 
uiKiuestionably  be  active  competitors  in  the  other  railway  -markets 
of  the  Far  East,  especially  through  their  utilization  of  Chinese  labor 
in  Manchuria  and  possibly  Shantung.     The  Japanese  are  manifesting 
aaministrative  and  organizing  capacity  in  the  utihzation  of  Chinese 
labor  m  those  regions,  although  they  may  not  make  the  occupation 
particularly  attractive  or  interesting  for  the  Chinese  coohe  in  their 
employ. 

RAILWAY  EMPLOYEES  ANB  WAGES. 

The  nuniber  of  employees  in  the  Japanese  Government  Railways, 
as  of  March  31,  1916  and  1917,  was  19.5  and  19.7  per  mile  of  line  for 
the  respective  years.  The  Bureau  of  Railway  Economics  Bulletin  103 
gives  the  average  number  of  employees  on  those  American  railways 
that  earn  more  than  $1,000,000  a  ^a^ar,  for  the  year  endetl  June  30 
1915,  as  6.3— this  indicating  that  the  Japanese  Government  Railways 
have,  m  round  numbers,  three  times  as  many  employees  as  American 
trunk-hne  railways. 

The  foilomng  table  of  wages  for  the  several  classes  of  employees 
from  1894-95  to  1915-16  shows,  notwithstanding  the  present  low 
wages,  that  the  compensation  for  all  classes  of  the  Japanese  Govern- 
ment Railways  employees  has  practically  doubled  during  this  period 
Itie  president  of  the  railways  received  in  1915-16  1311.55  per  month* 
tJie  vice  president  and  engineer  in  chief  each  received  $207  75*  the  11 
directors  m  1915-16  received  an  average  of  $161.65  per  month  as 
compared  with  $157.17  per  month  for  the  6  directors  in  1914-15-  7 
engn-3eis  m  1915-16  received  an  average  of  $148.96  per  month, 'as 
compared  with  $165.84  for  12  engineers  in  1914-15.  The  wao^es  of 
other  employees  have  been  as  follows:  "^ 


1804-95 

1899-1900 

1904-5 

Class  of  employees. 

Number 

of 

employees. 

Average 

amount 

per  month. 

Number 

of 

employees. 

Average 

amount 

per  month. 

Numl>er 

of 

employees. 

Average 

amount 

per  month. 

oHrnals  and  engineers: 

lli;-;her  grade 

Lower  grade 

Clerks. 

.Assistant  engineers '.'.'."."  11* 

Binployees * " 

S.crvants ...1111111111111 

2 

39 
717 
151 

873 
8,111 

f  135. 10 

51.65 

10.22 

13.19 

5.01 

4.34 

4 

71 

1,286 

290 

2,570 

14,391 

1145. 43 

57. 16 

12.51 

17.93 

6.49 

5.96 

3 

85 

1,328 

265 

3,114 

18,666 

1144. 90 

63.  .53 
16.30 
22.79 

7.42 

6.64 

Total.. 

9,893 

5.18 

18,612 

6.90 

23,461 

7.7i 

150  lAILWAY  MATERIALS,  EQUIPMENT,  ANB  SUPPLIES. 


ClMiiofflnptoyMi. 


Oildals  and  atigineers: 

Higher  gfiiiii.. 

•Lower  gnide 

Clerks 

Asaiatont  engineers. '.'.'.'.'.'. 

Bmployafi* 

aiinninte,... .„ 


im-io 


191.4-1.5 


Kraaber 
of 

employcfs. 


ID 

441 

4,492 

1}  Wl 

Zt|<Sll 

m,  lis 


Atmuco 
per  ni.ontli. 


17..  IS 

21.67 

8.94 

7..» 


Number 
of 

employees. 


.Avemp' 
amoant 


wu-n 


Jfumter 

of 


4,,5ii 

30, 119 

77,  «M 


PCX  month...  employees. 


tt7S.33 
7S.0S 

3fiu  20 
If.  Da 

7.« 


90 

160 
#,87B 
2,190 

74,783' 


Avomge 

amount 

per  mont  h. 


m,xm 


S167. 00 
76.07 
21.»3 

26.  t.l 
10. 10 

7.n 


&72  111,  964 


».53  112,102 


9.75 


Prelimmarj  figures,  give  the  average  wages  .for  115:282  cmploveM 
.for  t.he  year  eaded  March  31,  1917,  as  19,75  gold,  whicfi  is  exactJv  tlie 
same  as  that  for  1916,  iiotwithstaiidiiig  the  large  increase  in  aU  other 
cW  of  wages  in.  Japan.  _  It  is  stated,  however,  that  considerable 
iidvanceii  have  been  made  since  that  time;  the  writer  has  no  detailed 
mfonnation  as  to  the  amount.  Bulletins  Nos.  100  and  103  of  the 
Bureau  of  .Railwav  .Economics  give  the  average  monthlv'  wages  of  all 
emplo3^ees  of  the  l>ef ore-mentioned  American  railways  for  lie  years 
e  ided  June  30,  1913  and  1915,  as  163.70  and  $68.88.    "^his  shows  that 

hari3L!3^L'''''  *H-^''"''T.  ?*^'^*y?>'  .i^  round  numbers, 
■fci^nriSfi^  ^"^  "'  ^'^^  ^  '^"^'^  "■"  '^'  •^^'*"^^*^ 

enEdC^^  ^^"^  y^^"^ 

40,700  ton-miles  (2,0«)0  pounX  moved  oill  mUef  wwS'h?^^^^^ 

employee.  The,  mhove-mentioned  bulletins  show  that  the  trunk-line 
railways  of  fe  United  States,  for  the  years  ended  June  30,  1914  and 
1915,  moved  166,050  and  195,700  ton-miles  for  each  employee,  or, 

111  round  iiiim.bers,  hve  tmes.  as  m.a^iiy  ton.m..iles  per  employee  as  the 
Japanese  Govemm.ciit  .Railways.  The  same  data  show  that  the 
Japanese  ^.Kailways  for  the  yeare  ended  March  31,  1914,  1916  and 
1917  carried  32,900,  32,300,  and  37,800  passengers  one  Wile  for  each 
employee,  aiid  the  American  railways  for  the  years  ended  June  30. 

llnU^l  m'  ""ZT^  f/^^  *"*^  2¥^  passengers  one  mile  for  each 
employee  More^  than  85  per  cent  of  ,aU  the  Japanese  passengers  are 
.moved  thn-d  class  and  .less  than  1  per  cent  are  moved  first  d&ss 

thSti!^  Skwt^ytZ  V^  i'^^r'*"'-  commitation  to  decide 

me  relative  elliciency  of  the  Japanese  Government  Railways  as  com- 
pared with  the  American  railways.  In  the  writer's  opinion  the 
Japanese  perform  efficient  enough  to  warrant  the  statement 

that  in  all  probabdity  the  Japanese  will  largely  take  care  of  their  own 
maimfacturing  of  radway  materials  in  the  future  and  (at  least  at 
times)  be  active  competitors  in  other  railway-material  business  in  the 
p  ar  tast. 


m.  GENERAL  TRANSPORTATION  CONDITIONS. 

COASTAL  SHIPPING. 

Japanese  progress  in  shipping  in  recent  years,  particularly  since 
the  begmnmg  of  the  present  war,  has  attracted  much  attention. 
Ooastal  shippmg  m  one  form  or  another  has  for  hundreds  of  years 
been  a  feature  of  Japanese  domestic  trade.    At  present  the  coastal 
shipping  is  very  extensive  and  consists  of  a  great  variety  of  vessels 
from  modern  steamships  to  sailing  vessels— the  latter  being  similar 
m  niany  ways  to  the  ordinary  type  of  Chinese  junks.    All  the  indus- 
trial centers,  particularly  Osaka,  Tokyo,  and  Moji,  are  served  by  this 
coastal  shipping.    The  Osaka  and  Tokyo  districts  are  both  provided 
with  a  system  of  canals  on  which  is  moved  a  very  considerable 
amount  of  traffic,  practicaUy  to  the  doors  of  the  small  factories  that 
abound  in  both  of  these  districts;  this  also  applies  to  a  number  of  the 
large  plants.    The  writer  observed  the  operations  on  these  canals  in 
Osaka  and  was  very  much  impressed  with  the  immense  advantao^e 
to  the  district  of  this  system  of  transportation,  connecting  with'^a 
protected  basin  in  the  Osaka  harbor,  where  materials  were  received 
and  deUvered  directly  from  and  to  seagoing  coastal  vessels      This 
arrangement,  with  the  labor  available,  unquestionably  affords  a  cheap 
and  effective  local  handling  of  freight  and  greatly  reUeves  the  street 
congestion  of  these  crowded  districts. 

HIGHWAYa 

Ther^  are  several  historical  highways  or  roads  of  travel  in  Japan, 
of  which  the  most  noted  is  probably  the  Takaido,  the  ancient  hi^^hwav 
from  Tokyo  to  Kyoto  and  Osaka.  There  are  roads  over  alf  parts 
of  Japan  largely  used  for  moving  agricultural  products  in  mule  carts, 
hand  carts,  and  to  a  considerable  extent  by  carriers.  Few  of  these 
roads  are  niacadamized,  but  since  many  of  them  are  through  the  am- 
cultural  districts  where  irrigation  is  extensive,  particularly  for  the 
growing  of  rice,  the  general  practice  is  to  raise  the  road  considerably 
above  the  surrounding  ground,  generaUy  giving  good  drainage.  These 
roads  Ere  usuaUy  well  maintained,  and  this  method  of  construction 
m  the  course  ot  time  has  caused  the  roads  to  become  surprisindv 
hard  considering  the  class  of  material  used  m  their  construction 
^  r  rl^^  f?suli  might  be  caUed  an  extreme  case  of  the  adaptation  or 
sohdihcation  increment  as  spoken  of  in  the  valuation  of  grading  work, 

CHARACTER  AND  DEVELOPMENT  OP  JAPANESE  RAILWAYS. 

CLASSIFICATION. 

Railways  in  Japan  can  be  divided  into  three  groups,  as  follows:  (1) 
Imperial  Government  Radways  of  Japan;  (2)  privately  owned  and  op- 
erated steam  railways;  (3)  tramways.  The  second  of  these  are  agam 
divided  into  what  are  known  as  private  railways  and  light  railways. 
Ihe  private  railways  are  Imes  not  ordinarily  having  any  guaranty  from 

151 


i'lij 


Ml 


152  llAILWAY  MATEBIALS,  EQ,UIPMENT,  AHB  SUPPLIES. 

the  GoTemmeiit,  altbougli  some  of  these  pnw&te  railways  in  recent 
yeara  Mm  made  extensions  and  additions  to  the  extent  of  $1  296  075 

rS  T^Z^""  i^'^^'*  ^"^^^  ^T'  P^om«lgat^  in  1911  and 

revised  in  1914  whereby  private  light  railways  are  gnaranteed  a 
profit,  with  «ie  limit  of  5  per  cent  of  their  construction  expenses /for 

^rii^htl  wf  f^  "^  of  ooenmg  for  bnsiness!^   Most  of 

thih  light-railway  mileage  has  been  built  since  the  Railway  Nation- 
alizat^on  Law  was  Bfwsed  in  1906.  although  a  few  of  the  lines  w(»re 
m  existence  as  early  as  tki  nineties,  and  one  in  1888.  Tramways. 
as  shown  later,  can  be  subdivitied  into  electric,  steam,  eas-motor 
horse,  and  man-power,  and  can  also  bo  subdivided  into  those  munici! 
pally  owned  and  operated  and  those  privately  owned  and  operatiMl 
No  guaranty  is  made  for  any  of  these  tramways,  and  they  aiVtlicre^ 
fore  ^  shown  under  one  general  group.  " 

oflll'llif'!^'!!^^^^^^^^^^^^^  ^^^"^  ^^^'  classification  and  general  statistics 
of  ai  classes  of  railways  m  Japan  as  of  March  31 ,  1916.  The  mileac-ro 
far  tie  Government  .milwmys  had  increased  to  5,857.6  miles '  by  Mar^li 

i  :  ■''?  V '  f  "*  !f  ■^■o™P%''*^  information  for  that  year  is  not  yet  i^ailable 

the  data  for  the  previous  year  have  been  used: 


JAPAlf. 


Items. 


CiiBiber  of  ccunpiiiiles 

Milf 5  0 f  line  open. , 

Miles  of  III  I  tracks , 

"Ues  'Oi  ill ,e  Biidcr  eonstniclioo Ill"  II 1 1 1 1 

Noniber  of  loooiaciiTes , ..,,.., 

Kuin,b«r  of  passenser  f  ars 

Awra*  scatinf  caiiarit  y— pereons . ,,,l, 

Kiimber  of  goods  wiiaioiis 

AviTaijT'  ram: in?  cai>tetty— pounds. , . , ,...11111 

Kiimbf  r  of  service  can , I 

—    -    '-•■vnniKpap,nsMtilP,ifi,fli| 

Niiniher  ol  directors  and  gcnwal  offlcm; 

iHuniriHT  of  other  wnploviw 

Total  number  of  employers . .  .llllll'.llllllllll 

Awjca?©  moBthly  wmm  ©f  diwetors  awl  tenara! 

ofleers , ■■■ 

Av«rat»e  nioiitlilY  wastes  ol  other  ereivlovees 
Average  nwrnthly  wages  of  all  emplovees.  .'.'.Ill' I" 'I 


Kfnd  of  railway. 


OoTim- 
meat. 


8, 840,.,  I 

7,W.O 

4  Ml 


12,640 
21,,  K5 


PriTate. 


Llfhl. 


•*'  "■is* 


112,102 


m 


8 

272.6 
880.0 
82.0  , 

i7<l 

17 

1,,22S 
W,  'lOO 


46 
2.6.19 
2, 9.% 


■83 1  •  09' 
,fft.M 
t7.M 


112 

I. '4  71.1 
l.T;ii.3 
1,. vol.  II 

310 

l;20i 

40 

3,517 

If.  650 


8, 9-27 
9,ttlO 


17.57 
tiL7l 
17.31 


Tram- 
way. 


IM 

1,255.1 

390.0 

22S' 


Total. 


256 
8, 7.M.  5 

'2,'rai'6 

3,S71 

18,a75 


1/779 


49,1(12 


i7,aMY"iii,"63a 


o  Excludes  >i(,:mi>asseiv?cr-?arr\1ng  carl 
b  See  Cgures  on  paec  149. 

,H18TOBICAl  StlB?l¥. 

^  Dr.  Watarai,  in  bis  ''',Natio,nalization  of  Railways  in  Jap,aii  "' 
gives  tlie  first  proposals  for  railways  as  made  by  the  Eiiglish  amiissk- 
dor  m  18611  which  ,,^  after  much  opfositi,o,ii,,  Snally  resulted  in  tiie 
op«iing  of  the  18^m,ile  line  from  fotyo  to  Yokohama  in  1872-the 
first  rai,lway  in  Japan  con,8tructed  and  operated  as  a  Government 
line.  1  he  next  iras  a  Government  line  between  Kyoto  and  Osaka 
opeiied  ,in  Dwem,ber,  1873,  and  extended  to  Kobe  in  July   1874     "  ' 

Dr.  Watarai  verjr  properly  divides  the  h,istory  of  the  railway  devel- 
opment  m,  Japan,  between  the  Goyemment  railways  and  the  private 


153 


railways;  he  then  divides  each  of  these  into  three  different  periods. 
1  he  three  neriods  for  the  Government  development  are  as  follows: 
( 1 )  From  the  beginning  to  the  completion  of  the  Tokaido  Railway, 
covering  the  interval  from  1872  to  1879;  (2)  from  1890  to  the  nation^ 
alization  in  1906;  and  (3)  from  that  time  to  the  present.  The  three 
periods  for  the  development  of  private  railways  are:  (1)  From  1882 
to  the  war  with  China  in  1894;  (2)  from  1895  to  the  nationalization 
in  1906;  and  (3)  from  that  time  to  the  present. 

Until  1882  the  actual  buildinsj  of  railways  was  done  entirely  by  the 
Government,^  although  private  interests  had  considered  several  proj- 
ects. The  first  really  private  line  was  the  I'eno-Kumairai  line,  38 
miles  in  length,  opened  in  July,  1883.  This  line  promptly  showed  a 
prohi  of  about  10  per  cent,  and  from  this  time  until  the  beoinning  of 
the  Lhmo-rlapanese  War  private  interest  ^\as  active  in  building  rail- 
ways, with  the  result  that  by  the  end  of  1893  (or  practically  the  beoin- 
ning of  the  war  with  China)  there  were  1,368  mile^s  of  private  raik^ays 
against  a  total  of  557  miles  of  Government  railways.  Many  of  these 
private  railways  were  given  assistance  in  the  way  of  loans  or  other 
helj)  and  encouragement  from  the  Government,  "and  from  the  finst 
their  construction  was  regulated  so  that  there  never  has  been  any 
destructive  competition  between  the  various  lines. 

As  a  result  of  the  war  with  China  the  need  of  railways  was  appre- 
ciated more  than  ever,  particularly  by  tlie  military  authorities,  and 
until  the  war  with  Russia  there  was  a  growing  sentiment  for  the 
nationalization  of  all  the  important  lines,  thougli  there  was  sufficient 
opposition  to  prevent  such  action.  The  result  was  that  during  this 
period  Government  building  was  accelerated  but  private  buildino- still 
continued  extensively.  At  the  end  of  1904  fpracticaBy  the  opening 
of  the  Russo-Japanese  war)  there  were  1,470  miles  ol  Government 
mlways^  and  about  40  private  companies,  with  a  mileage  of  about 
3,2o0,  ot  which  2,340  miles  were  owned  and  operated  by  the  six 
liirgast  companies. 

Since  the  nationalization  in  1906  the  private  railways  have  been 
gi-adually  disappeaimg  and  the  so-called  light  railways,  for  the  devel- 
opment of  the  immediate  country  throudi  which  they  are  built  are 
bemg  encouraged  and  fostered  by  the  authorities. 

NATIONALIZATION  OF  RAILWAYS. 

^  The  nation iilization  of  the  Japanese  railways  is  a  very  interesting 
incident  m  the  world's  railway  history,  and  for  a  student  of  tliis  sub- 
ject Dr.  Watarai  s  book,  above  mentioned,  will  be  found  to  mxe  a 
very  good  account  of  how  it  was  consummated  and  the  attendant 
results  up  to  the  end  of  1914. 

I^e  fii-st  move  to  nationalize  the  railways  was  made  in  1891  by 
the  Matsukata  cabinet.  This  same  cabinet  made  the  second  effort  in 
1H92.  1  he  third  movement  was  made  by  the  Liberal  Party  in  1S99 
as  aresultof  theChino-Japanese  War.  The  fourth  movement  was  by 
the  Ipiagata  cabinet  in  1900,  and  the  fifth  and  final  effort  was 
made  in  March,  1906.  This  law  was  pa^^sed  by  the  Japanese  Parlia- 
meiU  in  considerably  less  than  a  month  by  a  large  majority,  notwith- 
standing the  fact  that  if  extended  discussion  had  been  allowed  there 
would  probably  have  been  considerable  opposition.  It  was  first  pro- 
posed to  nationalize  32  of  the  largest  lines,  but  the  scope  of  the  plan 
was  reduced  to  include  only  the  17  most  important  railways.    At 


RAILWAY  MATJSRLILS,  BQUIPMENT,  AKD  SUPPLIES. 

healings,  Mr,  Oislii  leader  of  tlie  Prog^ressivc  Party  and  rhairmaii  of 
the  special  nationalization  eornm,itt€e,  made  formal  inquiry  on  six 

points.     Three  of  these  questions  and  their  answers  are  very  inter- 
esting:, as  is  one  question  that  was.  not  answered.    Dr.  Watar.ai  eives 

these  as  f  oMo'Ws : 

Q.  What  danger  18  there  in  the  prwent  system  of  private  reilroada,  regarded  from 
the  iMiiint  of  view  of  national  defenae? 

A.  (IJy  I^Iinister  of  War  Terauchi.)  Natioml  defenee  is  defensive  and  offensive 
an«i  syBtematically  related  railroads  are  necewiry  not  only  to  passive  but  also  to 
aetive  protection.  As  concerns  the  first  case,  we  liave  had  a  most  unfortunate  ex- 
perience with  the  private  roads;  and  in  the  other  contingency,  in  which  the  coopera- 
tion of  maritime  mteresta  is  needed,  the  private  roads  have  again  proved  themselves 
msiificient.  It  wm  further  ehowu  in  the  war  with  Eussia  that  the  operation  of  the 
prnmt^  railroads,  constructed  mth  'poor  materials,,  was  ahsolutely  deficient. 

Q.  Does  not  the  new  Joan  of  about  a  half  billion  yen  mean  too  great  a  burden  upon 
the  State  exchequer,  which  has  already  been  exlaust-ed  by  the  war  with  Russia? 
I.*urther:  WmU  the  daw  of  money  to  other  countries  be  increased  afld  our  system  of 
hank  notes  weakened?  •' 

A.  {By  MiniMer  of  Finance  Sak  ay  a.)  According  to  the  inwstigation  of  the  l^fin- 
fmr  of  Communications,  the  State  roads  will,  ,yi,eld  50  million  yen  annually  to  tho 
State  eicheq'uer,  when,  after  40  yearn,  the  amorti,»tion  of  the  railroad  loans  has  been 
completed .  Although  an  addition  to  the  State  debts  is  not  pleasant  to  contemplate" 
one  need  harbor  no  doubts,  for  the  loan  in  question  is  a  productive  one-  there  wi,!'r' 
therefore,^  be  no  bu„rd,en  upon  the  whole  nation,  because  the  accounting  system  used 
for  ;the  railrwid  loans  will  be  separated  fhun  t,he  general  budget. 

Q.  ,After  the  actu,a,l  nationahzation,  will  the  tariff  rates  be  lowered,  and  wiU  tho 
present  narrow  gauge  be  replaced  by  the  standard  gaugf»? 

,  A.  (,By  Minister  of  Com,ni,u,nications  T.  Yamaoata.)  The  administration  is  iilan- 
m,ing  a  lowenng  of  t«ri,ff  rates,  but  it  can  give  no  further  particulars  concerning  the 
exact  rates;  the  qu^estion  of  the  gauge  is  not  yet  ready  for  discussion 

Q.  Do  not  the  un,rem,u,n,erative  lines  Included  in  the  resolution  have  a  bad  effect  on 
State  hnances?  '    ' 

This  question  was  not  answered. 

The  question  of  the  compensation  given  to  the  private  owners  hy 
tlie  Government  is  very  interesting,  hnt  the  reading  of  the  law  on  this 
point  IS  not  quite  clear.  The  witer  consulted  several  authorities  but 
did  not  ohtain  a  translation  that  can  he  quoted.  A  careful  study  of 
the  data,  however,  seems  to  warran,t  the  statement  that  the  substan- 
tial result  was  the  taking  over  of  all  the  obligations  by  the  Imperial 
Cjovemment  of  Japan  in  the  form  of  bonds  or  similar  liabilities  bearing 
a  fixed  rate  of  interest.  The  capitalization  of  all  the  properties  was 
then  determined  on  a  5  per  cent  basis,  after  deducting  what  might  be 
called  the  funded  obligations  mentioned  above,  and,  as  the  roads  had 
earned  an  average  of  something  more  than  9  per  cent  for  tho  three 
years  preceding,  this  amounted  to  a  very  considerable  profit  to  the 
private  owners  over  the  original  cost  of  construction.  The  nationali- 
zation proceeded  very  prompdy  after  the  passing  of  the  law,  and  in 
less  than  one  year  after  the  promulgation  of  the  law  all  of  the  17 
roads  had  been  taken  over.  The  total  construction  cost  (including 
amounts  that  had  been  expended  during  the  interval  while  arrange- 
ments were  being  made  to  take  over  the  roads)  totaled  $120,455,650 
gold,  and  the  final  price  paid  amounted  to  $235,565,300— an  advance 
of  $115,109,650— thus  showing  an  actual  profit  of  about  95  per  cent 
on  the  ongmal  investment,  without  consideration  of  return  during  the 
interval  of  private  ownerehip.  The  above  figures  are  taken  from  Dr. 
watarai's  data. 

No  loans  were  raised  for  the  taking  over  of  any  of  these  lines,  but 
the  ownei-s  accepted  Government  obligations  bearing  5  per  centfor  tho 
entire  amount.    It  m^as  assumed,  in  the  nationalization  plan,  that  tho 


jAPAir. 


An}*} 


railwavs  would  self-amortize  in  about  40  years,  but  this  anticipation 
18  far  from  being  realized  for  the  reason  that,  although  the  lines  have 
been  fairly  profitable,  the  progress  of  Japan  has  made  it  necessary 
to  return  to  the  property  much  more  money  than  the  profits  have 
amounted  to.  This  has  been  the  usual  result  in  all  other  similar  sit- 
uations. In  other  words,  the  railways  of  a  growing  countiy  ordinarily 
require  much  more  money  put  into  them  in  tlic  way  of  betterments 
and  additions  than  it  is  possible  for  the  most  profitable  to  earn. 

WIDENING  OF  GAIIG*. 

The  gauge  on  the  Government  railways,  private  railways,   and 
light  railways  is  mostly  3  feet  6  inches.     Ever  since  the  Chino- 
Japanese  war,  and  particularly  since  the  Russo-Japanese  war,  there 
hms  been  a  very  decided  sentiment  in  favor  of  widening  the  gaucre 
of  the  Government  Railways  to  4  feet  8 J  inches.     Both  commercial 
and  military  reasons  are  given  in  support  of  this,  but  the  arguments 
for  national  defense  form,  no  doubt,  the  main  considerations.    A 
Bhort  time  before  the  beginning  of  the  world  war  an  Imperial  Com- 
mission made  a  very  careful  study  and  recommended  that  the  gauge 
on  all  Imes  be  widened.    The  estimated  cost  was  almost  equal  to  the 
total  capitaUzation  of  the  railways  at  that  time,  or  about  1450,000,000 
gold,  and  the  program  contemplated  about  20  years  for  the  making 
of  the  change.     This  length  of  time  was  later  reduced  to  about  eight 
or  nine  years,  but  this  reduction  of  time  involved  no  reduction  in  the 
estimated  cost.     This  scheme,  however,  was  not  only  for  a  widening 
of  the  gauge  to  4  feet  8i  inches,  but  was  a  most  comprehensive  pro- 
gram for  actually  reconstructing  the  most  important  lines  by  care- 
fully worked-out  grade  and  curve  reductions,  which  would  have 
resulted  in  high-speed  railways  through  the  rough  country  of  Japan 
where  the  securing  of  such  hues  would  be  very  expensive  in  any  event, 
At  present  there  is  under  consideration  a  much  less  ambitious 
scheme  proposed  by  Dr.  Shima,  chief  of  the  mechanical  department, 
consistm^  of  an  mgeniously  worked  out  arrangement  for  exchanging 
axles  and  wheels  of  the  different  gauges  under  cars  in  transit  (mostly 
goods  wagons),  and  widening  the  gauge  by  successive  sections.     The 
motive  power  and  most  of  the  passenger  equipment  would  be  chantred 
permanently  in  progressive  steps,  but  the  exchange  of  axles  and 
wheels  under  the  goods  wagons  would  extend  over  a  very  considera- 
ble period.    This  scheme  contemplates  a  very  small  amount  of  bet- 
terment in  the  grade  and  ahgnment  conditions  but  will  mean  only  a 
fraction  of  the  expense  that  would  be  involved  in  the  more  elaborate 
scheme.     W^ile  the  writer  appreciates  the  raslmess  of  hasty  conclu- 
sions, still,  m  view  of  the  recent  developments  m  electrical  construc- 
tion and  the  dense  population  of  Japan,  he  feels  warranted  in  stating 
that  a  plan  for  high-speed  electric  lines  along  selected  routes  giving 
the  ultimate  result  of  paralleHng  the  present  steam  routes  has  much 
to  commend  it,  particularly  when  it  is  considered  that  the  freight 
trafiic  of  Japan  is  largely  highly  classified  business  and  only  a  small 
portion  IS  moved  m  commodity  bulk.     Further,  allowance  is  to  be 
made  for  the  fact  that  the  Japanese  3-foot  6-mch  equipment   is 
designed  on  the  widest   practicable  measurements.     The  present 
equipment  has  a  height  of  12  feet  6  inches,  which  is  equal  to  that  on 
any  British  3-foot  6-inch  hne,  and  a  width  of  8  feet  10  inches,  which 


i 


'Mf 


i 


156  lAILWAY  MATEIIALS,  EQUIPMEKT,  A¥B  SUPPLIES. 

exceeds  that  on  most,  ,if  nol.  ai,  British  lines  of  that  gauge.  Some 
of  the  passenger  equipment  is  36  feet  between  truck  centers  and  56 
feet  betwooii  coupler  knuckles.  AM,  of  this  indicates  that  the  Japa- 
nese  have  gone  to  the  limit  in  dimensions,  and  it  is  quite  apparent  tfiafc 
a  plan  designed  to  secure  any  substantia!  benefit  as  a  whole  must 
nivolve  the  grade  and  afignment  mprovements  already  mentioned. 

JAFAMISI  'IlAttWAf  'POLICY. 

The  policT  of  the  Imperial  Government  of  Japan  is  for  the  Govern- 
meut  to  own  and  operate  the  truuk  lines  and' all  important  branch 

lines.  This  policy  has  been  consistentlv  foUowed  since  the  nationali- 
zation of  the  priJicipal  railwajs  in  1906,  and  has  involved  the  taking 

over  of  a  number  of  the  private  railways  since  that  time  and  the 

building  of  additional,  Mnes  and  extensions.  The  so-called  private 
railways  are  all  being  gradually  taken  over;  two  of  these,  totaling 
MJjniles.  were  taken,  over  (h,iring  the  year  ended  ,March  31,  19„1,8, 
leaviiijr  only  six  private  railway  companies. 

The  building  of  the  light  railways 'is  strict^lv  regulated  under  the 
law  referred  to  on  page  152.  Oru>  very  interesting  feature  in  connec- 
tion with  the  papient  of  the  guaranteed  subsidies  is  that  when  paitl 
the  funds  are  taken  from  the  Imperial  Government  Railway  Depart- 
meut^^s  budget,  and  not  fro,m  the  general  treasury  funds 'as  would 
naturally  be  e,xnect«l.  There  is  probably  good  logic  to  support  this 
procedure,,  m  that  these  hght  ra,ilwavs  are  feeders  to  the  main  rail- 
wnTO  and  a,U,_  the  business  is  a  very  sliort  haul.  The  amount  actually 
pa,id  ,in  subsidy  for  tlie  year  ended  March  31,  1916,,  ww  1449,876,  * 

QOf  IIWMBNT  •COMTROiL  AND  MCSIIMTION. 

The  control  of  the  financing,  construction,  equipment,  operation, 

and  rates  of  the  private  railways  or  light  railways  and  of  all  the  tram- 
ways is  vested  in  the  ■"general  department"  of  the  Imperial  Govern- 
ment Railways.  This  renjulation '  and  control  is  very  complete  and 
painstaking  m  every  particular,  especially  ,in  what  is  included  as  cost 
of  construction  and  also  as  to  what  standards  of  roadway  and  equip- 
,iiient  shall  be  used  by  all  these  Tarious  classes  of  hues.  ' 

CONSTWICTION'  FKOCHAM,. 

,For  the  future  construction  of  the  Imperial  Government  Railways 
and  the  light  railways  the  Imperial  Government  has  worked  out  a 
ve:ry  carefiiily  considered  program  and  aU,  construction  must  con- 
form to  this  scheme.  The  '''general  department"  of  the  Imperial 
,Railways  directly  decides  whether  or  not  additional  light  railways 
or  tramways  shall  be  built.  One  feature  kept  constantly  in  mind  is 
tliat.  no  duplicating  lines  are  to  be  built  unless  there  is  a  local  need 
for  them.  This  is  undoubtedly  a  wise  policy,  and  a  similar  arrange- 
ment should  be  worked  out  for  every  country  that  has  not  yet  mea- 
surably completed  its  ,railway  doyefopment.  Such  a  complete  and 
comprehensive  scheme  should  be  worked  out  in  China,  where  very 
great  be:ttefi,t  wo'uld  accrue. 


I¥.  IMPERIAL  GOVERNMENT  RAILWAYS  OF  JAPAN. 

EXTENT. 

The  preliminary  data  for  the  Imperial  Government  Railways  of 
Japan  for  the  year  ended  March  31,  1917,  show  a  total  of  5,856.6 
miles  of  lines  and  a  total  of  9,029.2  miles  of  all  trades,  or  1.54  miles 
of  aU  tracks  to  1  mile  of  line.  As  all  the  data  for  1917  are  not  avail- 
able, the  data  referred  to  hereafter  in  this  report,  except  where  so 
stftt^d,  will  bo  for  the  year  ended  March  31,  1916. 

The  entire  system  is  divided  into  five  grand  divisions.  The 
eastern  division,  with  headquarters  at  Tokyo,  is  composed  of  all  the 
lines  on  the  main  island  east  and  northeast  of  Tokyo,  amounting  to 
1,846.0  miles.  The  central  division,  with  headquarters  at  Tokyo, 
includes  the  linas  between  Tokyo  and  Mibara,  amounting  to  966.7 
miles.  The  western  division,  with  headouarter*5  at  Kobe,  includes 
the  fines  between  Mibara  and  Shimonoseki,  as  well  as  all  the  lines 
on  the  island  of  Shikoku,  amounting  in  all  to  1,274.1  miles.  The 
lines  on  the  island  of  Kyushu,  amounting  to  725.1  miles,  form  the 
Kyushu  division,  with  headciuarters  at  Moji;  and  the  lines  on  the 
island  of  Hokkaido,  amounting  to  944.4  miles,  form  the  Hokkaido 
division,  with  headquarters  at  Sapparo. 

ORGANIZATION  AND  OPERATING  METHODa 

Tlie  parfiamentary  head  of  the  Japanese  Government  Railways 
is  the  Prime  Minister.  The  administrative  and  operating  head  is 
the  president,  who  has  under  his  direction  a  complete  organization, 
con  isting  of  a  general  staff  and  a  director  with  a  complete  division 
staff  in  charge  of  each  of  the  five  divisions  above  mentioned. 

The  system  of  operation  is  the  departmental  or  branch  method 
already  mentioned,  but  there  is  superimposed  the  added  feature  of 
what  might  be  termed  a  semimilitary  organization.  By  this  it  is 
meant  that  each  official  is  given  a  rank  and  grade,  with  the  result 
that  in  every  contingency  there  is  a  ranking  official  who  will  have 
authority  to  take  action.  The  general  adminktration,  in  charge  of 
the  president,  has  a  vice  president  and  a  general  staff  divided  Into 
six  departments,  or  bureaus,  as  follows:  Secretariat,  general  admin- 
istration, traffic,  finance,  engineering,  and  machhiery  and  rolling 
stock. 

The  duties  of  the  several  bureaus  are  indicated  by  the  titles, 
except  the  general  admmistration  bureau,  which  may  be  regarded 
as  a  commission  for  the  control  and  regulation  of  the  light  railways, 
private  railways,  and  tramways.  This  bm-eau  consists  of  three 
members,  one  of  whom  is  the  dbector,  one  the  secretary,  and  one 
an  engineer.  They  supervise  in  every  sense  the  actions  and  opera- 
tions of  all  the  above  classes  of  railways,  even  to  the  extent  of  the 
specifications  for  materials  and  equipment  to  be  bought. 

1&7 


.»"♦ 


158  'lAILWAY  MATERIALS,  EQ:UIPMEHT,  AHD  SUPPLIES. 

m  mstliod  of  trftin  operation,  is  the  typical  "station-master 

method  IE  all  details,  ao,ci,  with  the  conditions  present  and  the  help 
available,  this  is  admittedlf  the  eminently  safe  and  proper  arrant^e- 
ment,.  Outside  of  the  Tokyo  electrified  ilistrict  the^simalinff  is  all 
m  accordance  with  British  Board  of  Trade  practice,  but  the  fines  as 
a  rule  are  madoauately  8,igiirfed.,  In,  the  Tokyo  electrified  zone  some 
autoniatic  signafa  are  installed,  hut  these  are  somewhat  out  of  date 
and  include  several  kinds  of  signals.  With  the  amount  of  traffic  on 
the  Japanese  Government  Railways  and  the  small  amount  of  signal- 
ing at  present,  there  is  every  reason  why  the  most  modern  method 
of  8:ignalmg  should  be  adoptcvd  for  future  work.  It  is  important 
that  these  lines  be  adequately  signaled  as  the  traffic  grows,  and 
they  will  ultimately  require  very  intensive  signaling. 

Another  feature  would  be  the  extensive  use  of  selective  telephone 
appai-atus  for  establishing  central  control— by  this  means  petaininff 
all  the  safeguardmg  features  of  the  station-master  method  of  train 
operatim  and  stiU  getting  the  permissible  expedition  of  despatchinir 
nietmids.  ^         ""^ 

TIIA,mC  AND  HATEa 


JAPAlf. 


159 


The  followinc: 
Government  Rai 
1916,  and  1917: 


,giv< 
of 


jperformance  iguree  of  the  Imperial 
an  for  the  years  ended  March  31,  1914, 


liens. 


Ifl3-H 


ii»is-ie 


MI!«  of  line  opm , 

Total  invM'tment  assets . . . . 

Investmeiit  assets  iwr  mile  of  tiM. , . 

Total  wwktait  reTmne 

Total  wwkiiii?  expaoscB... 

0"P«r»tiii|[  ineome. 

Opuiratittf  mtio. ,  „ , . 

Interest  dhargas , ., 

Suteidi'W  t©  priTato  liuht  railways 

.Addition  and  ©xtemioii  charges 

Total  .iiKciiii»  deduetioM 

BiliMin  tosttrptas,. . , , , , 

Yearly  workinir  revenne  per  mfle  of  line  - 
Yearly  working  expenses  i>©r  mile  of  line. 
Yearly  operating  income  i»r  mile  id  line. 

Niim:ber  of  passenger  train-miles: 

Number  of  goods  train-miles 

Nnm  ber  of  mixed,  train-miles 

I  train  miles. . . 


5,470.7 


Worllnfrmrioiie  per  train-mile 

Working  expense*  per  train-mile 

O'perating  income  per  train-miJc , . . . 

Number  of  pascngers  carried 

NunilMr  of  passengers  carried  1  milt , 

coaching  eaminp , , 

Earnings  per  passenger  carried  1  mile 

Num  ber  of  tons  (2M  pounds)  of  goods  carried . 

Niimfier  of  tons  of  .goods  carried  1  mile , . . 

(Joodis  earnings , , 

Eamlnits  per  ton  of  goods  carried  1  mile  .111'.'.'.'. 


.,.,  .|ll,37l,«i 
-percent-.!  ^Al 
j    II 7. 734,  as 

ii,3tK<,ai7 

ti,M7,4W 

no.,  578 
S5, 0ti5 
Ci,4i3 

22,.1M,JBi 

S7.'4tt,»3 

$0,987 

.|  10.473 

-. j  m.Bu 

I    16:;77.1,143 

...3,fi»,9«,tiI9 

|27.»3,71S 

j      m.mim 

'      40,710,165 

3,4»,3M.,9« 

ia6,«ll,.4I3 

■-•••• !  PI.W#1.0 


5,75fi.S 
$510,277,620 

ti»,(i25 

t»,»3S,i80 

'117, '71 7, 440 

S32,20B,4aO 

40.3 

S18,339,te6 

wm,m 

S1,I74,0»5 

mt,m,m 

Sl.f,07S,;274 

910, 4» 

$4,838 

.35^  100,  €46 
2l.M6,022 
12,283,814 
59,330,482 

SI.  013 

$a469 
ia543 

172. 290,015 
3,8,56,536,966 

128,  .534, 246 
10.00673 

40,096,744 

3,706,806,918 

$28,436,177 

10.00768 


1916-17 


5,856.6 


$70,415. 7S1 
111,490,027 

.taB^iis;7S7 

43.3 
S19.84'7,m 

$3,010,330 
$32,481,3841 
$17,444,3n 

$12,120 

$5,248 
$6,873 

M»  060, 413 

36,571,150 
11,921,812 
64,613,374 

$1,091 

$0,473 
$0,618 

197,043,330 

4,255,374.717 

$33,390,396 

t0.0066S 

47,152,822 

4,680,630,819 

$34. 82.-).  7S2 

lO.  0a73<J 


It  Will  be  noted  that  the  passenger  and  freight  earnings  are  very 
nearly  equal.  For  several  years  past  the  freight  earnings  have  been 
.increasing  faster  than  the  passenger  earnings,  and,  with  the  contin- 
nation  of  the  industrial  development  of  Japan,  this  in  all  probability 


will  continue  until  the  freight  earnings  will  measurably  exceed  the 
passenger  earnings.  From  this  same  table  the  earnings  per  passenger 
carried  1  mde  will  be  noted  as  0.668  cent,  and  0.739  cent  for  a  2,00i)- 
pound  ton  earned  1  mile.  These  figures  are  for  the  year  ended 
Marcli  31,  1917.  The  corresponding  average  receipts  for  the  railways 
of  the  United  States  for  the  year  ended  June  30,  1915,  were  1.985 
cents  per  passenger  carried  1  mile  and  0.732  cent  per  2,000-pound 
toll  carried  1  mile,  as  shown  by  the  Bureau  of  Railway  Economics. 
Bulletin  No.  103. 

For  the  year  ended  March  31,  1916,  only  0.17  of  1  per  cent  of  all 
passengers  rode  first  class,  4.05  per  cent  rode  second  class,  and  95.78 
per  cent  rode  third  class.  The  first-class  passengers  made  an  average 
ride  of  91.1  miles,  the  second  class  55.8  miles,  and  the  third  class 
20.8  miles;  the  average  ride  for  all  passengers  was  22.4  miles.  The 
average  earnings  for  lirst-class  passengers  were  1.40  cents  per  mile, 
set-ond  class  0.85  cent  per  mile,  and  third  class  0.63  cent  per  mile. 
These  figures  do  not  include  berth  and  excess-luggage  charges,  but 
do  include  extra  fare  charged  first  and  second  class  passengers  on 
some  express  trains. 

For  the  year  ended  March  31,  1916,  the  coal  traffic  constituted 
about  40  per  cent  of  the  total  tonnage.  Lumber  was  the  next  lar^^est 
Item,  constituting  about  7i  per  cent,  and  rice  was  third,  amounting 
to  nearly  5  per  cent.  All  minerals  combined  made  the  fourth  item, 
amounting  to  2i  ner  cent.  The  very  large  number  of  commodities 
that  constituted  the  remainder  of  the  traffic  confirms  the  statement 
made  regarding  the  class  character  of  the  goods  business.  The 
average  earnings  for  less  than  carload  shipments  for  the  above  year 
were  1.598  cents  per  2,000-pound  ton  per  mile,  and  for  carload 
shipments  the  average  earnings  were  0.659  cent  per  ton-mile. 

OCEAN  FEBEY  SERVICE. 

An  important  feature  of  the  Japanese  Government  Railway  oper- 
ations is  the  shipping  (or,  rather,  what  might  be  called  the  ocean- 
going ferry)  service  from  Shimonoseki  to  Fusan—the  port  at  tlio 
southern  terminus  of  the  Korean  Railways — and  the  car  transfers 
and  ferries  between  Shimonoseki  and  Moji. 

On  March  31,  1916,  the  railway  administration  owned  40  steamers 
of  all  classes  and  had  4  o there  under  charter,  making  a  gross  tonnage 
of  20,700  (Japanese  basis).  The  length  of  route  worked  was  298 
nautical  miles,  and  the  average  number  of  daily  trips  was  132. 

For  the  above  year  the  number  of  passengers  carried  was  232,31  S 
with  earnings  of  $609,356.  The  cargo  handled  totaled  l,024.39f) 
tons  of  cargo,  and  the  earnings  realized  were  $509,811  from  cargo, 
$43,151  from  parcels,  and  $43,916  from  mail,  thus  making  a  total 
of  $1,205,234  for  shipping  operations. 

There  are  in  all  nine  routes;  eight  are  under  the  jurisdiction  of 
the  western  division  and  one  is  under  the  jurisdiction  of  the  Hok- 
kaido division. 

BUDGET  AND  ACCOUNTS, 

As  early  as  1887  a  law  required  the  Government  Railways  account 
to  be  separated  from  the  other  treasury  accounts.  After  nationali- 
zation this  law  was  modified,  but  the  accounts  were  still  left  under 


»#  { 


BAILWAY  MATEBIALS,  EQ/UIPMEXT,  A¥D  SUPPLIES. 

what  m,ight  1)0  €allo.cl  treasury  co^iitrol.  The  results  were  mnsatis- 
taetory,  pa.:rticiilarh-  as  regiirds  faiiure.  to  provide  necessary  amouuta 
for  taking  care  of  the  railway  situation,  these  essential  amounte 
being  prociireji  through  reductions  made  in  t;he  general  GoTernment 

.rlfi  ,i''\  **«'*^?'''  ^'^^^f  a.^'^w  railway-account  law  was  passed, 
and  lir.  Watarai  gives  the  principal  points  as  follows : 

the  railroad  aei'o  inta  will  1>©  sepamted  from  the  ffen.era.  State  budiret     The  rai»ita 

^Ji^lmle^  ''''°'**^'  ^''^'''''^^  «*>*■"  ^  defrayed  out  of  the  aimiml 

(2)  The;n,ece:saai7  fimds  for  additions  and  improvements  will  be  provided  bv  the 
operating  jacoine  _  Ii  this  does  not  .uffi,ce,  a  loan  or  some  other  form  ofl  iahii^^  ^vlil  e 
con1:mc:led  w;ludi  «  to  be  included  in 'the  railroad  tccounte.  The  totol^mu  ? 
tirmvw™.  '*'"''  "*^'  "''*^  '*'''''**''^  ^''**  ^^"*^''"^*^*  '*^  ^^'^  esthimtB  for  additions  and 

*IlJ|.fl  ill  t'lllClU.'-'i'. 

puipaw?  of  managmg  the  railraids,  the  (.ovcrnnient  may  issue  a  new  loan  or  a  nil 
Iritoa!!!^^^  ''^'''^'  "^^  "^'^^'^  aclministrationliZtm,?.;'oi 

nu2  Jlti^T"^  ^■^***  are  fesiied  for  the  State  roads^indudinR  those  contracted  (or 
llieir  regiijatioiifir  amortization,  on  the  grounds  mentioned  above  in  2  and  3  and 
rZ  ^^T:';T^'t^'f^'  ^^mtm^4  a;-cordinc;  u  the  law  of  natiZfi^bifl^^  " 

not )  el  i»,id  (  !t ,  to  be  cliarged  to  the  railroad  debit  account.  The  aums  needed  for 
the  paymwit  oi  interest  and  sinking  fund  aw  to  be  tra.iisferred  from  tteraS't^d 
a<-rmiirt  to  the  boofe_oi  the  special  fund  for  amortizing  State  debte,    ' 

(,,ii  Atter^:Hbtraet,tn|;'  tJie  amount  destined  by  law '"'for  the  reserve  fund  the  re^t  ii 
^^"^  ^  ^**?  «Pl**>' *«*>'"'Ot.  ,^  By  '■'■gain^  h  to  be  understood  Zt'am^i^b^ 
wlncli  the  attttual  receipte  exceed  the  .annual  expenditures.  »"">imi..  oy 

'The  reffliits  of  this  law  have  been  henelicial,  but  it  has  not  entirely 

prevent^ed  pohtixjal  control  of  the  rnilwav "  account:  During  tZ 
writers  hret  'vwit  to  Japan  the  budgets  for  the  Imperial  Jamnese 

Railways,  the  SoulJi  Manchuria  Railwav,  and  the  Korean  Railwa'vs 
■wi3i^  being  considered  by  tlie  Japaijeso  Inmerial  Diet,  wiih  the  resiat 
that  t  le  generd  railwav  offi,cers  m  Tokyo  cWoted  practioily  aU  their 
^^I''''''^'^  m'formation  in  tiiis  connection.  Tfe.  situation 
reminded  one  verv'  much  of  the  condition  in  the  various  departments 
in  Washi'0|rt,on  when  t^heir  appropriation  allowances  are  being  con- 
8icie,nMl  before  the  Appropriations  Committees  of  Congress. 

liie  *"sct-iip'   of  the  Japanese  liailwav  account  is  in  a  way  similar 

IJil^Zirr''  ^f^^^  ^^  indicated:' by  the^perfo^anc^  ,figu,res 

aijeaii}'  (iiioted.    The  data  are  quite  complete;  in  fact,  in  some  nar- 

timlara.  tW  are  rather  elaborate.    One  mteresting  piint,  however 
is  that  the  Ja-imnese  have  not  been  any  more  successfuUh an  America! I 

railways  in  allocating  the  expense  between  passenger  and'  freight 

mmSfllENT  ASSBfS. 

'The  term,  "■investm.ent  assets"  is  used  for  the  reason  that  tlie 
amount  shown  m  capital,  is  somewliat  misleading.  The  t^rm,  used 
ZZTf tl.r^w'''''^  propc^^y  as  iisually  underetood.  This  item  is 
siiown^m  the  table  on  page  1 58  only  for  the  year  ended  March  31  1916 

■S  atLZI'l?!'?'  '"'1'  r  ^^'"^  5<«S8,625  per  mile.  Vbile 
tiijs  appears  .like  a  very  lugh  amount,,  it  .indicates  the  difficultv  of 
railroad  cwistruction  .m  most  of  Japan.    Deducting  1115,109650 

&fh!^r  '^T*'*?'  """^f^i!  r'^'^'^'"%  mentioned  in  connection 
wiih  the  n.ational,i.z.ation  of  the  first  17  lines,  and  a.ssum.i.ng  that  the 
other  figures  .represent  construction  costs  (which  is  probably  a  closa 


JAPA¥. 


161 


approximation,  allowing  only  a  small  percentage  for  "cost  plus"),  the 
total  construction  costs  would  total  $395,167,970,  or  in  round  num- 
bers S68,500  per  mile  of  line.  This  figure  is  surprisingly  close  to 
what  good  authorities  estimate  the  cost  of  the  railways  in  the  United 
States  to  be  as  a  whole,  but  the  comparison  quickly  loses  its  Umi^ 
when  one  considers  the  Japanese  3-foot  6-incb  lines  in  comparison 
with  the  American  4-foot  8|-inch  lines  with  their  very  low  grades  and 
sniaO  amount  of  curvature. 

.EARNINGS  .AND  .EXPENSES. 

The  year  ended  March  31,  1915,  was  not  a  representative  vcar  on 
account  of  the  war  and  some  other  internal  influences  in  Japan.  For 
that  year  there  was  a  falling  off  in  the  earnings  and  an  undue  increase 
of  expense;  therefore,  that  year  will  not  be  referred  to  except  in  the 
averages  for  the  last  five  years.  During  the  five  years  ended  March 
31,  1913  to  1917,  there  has  been  an  increase  of  639  miles  of  line; 
trafhc  revenues  have  increased  from  $53,850,781  to  $70,415,784  and 
operating  expenses  from  $25,031,818  to  S30,490,027,  makinc^  an  in- 
CTcase  of  operating  income  from  §27,81 8,963  to  $30,925,757  This 
#t?^'A^^^SH^  ^^^  increase  of  operating  revenues  of  $16,565,003,  that 
11 1,105,794,  or  almost  exactly  two-thirds,  was  made  effective  as  op- 
erating income,  and  the  operating  ratio  during  this  interval  was  re- 
duced from  46  1  to  43.3  per  cent.  With  the  increase  in  wages  and 
cost  of  materials,  this  performance  during  this  particular  five  years 
certainly  warrants  attention  from  the  railway  managers  in  otlier 
parts  of  the  worid,  especidly  when  considered  in  connection  with  the 
average  rates  per  passenger  mile  and  per  ton  mile  already  given. 

NET  INCOME  AND  SURPLUS. 

Interest  charges  for  the  year  ended  March  31,  1913,  were  $17  732  - 
942,  and  for  1917  they  %vere  $19,847,931.  Deducting  all  the  other 
income  charges,  including  the  subsidies  to  the  guaranteed  light  rail- 
ways, there  was  carried  in  1913  a  surplus  balance  of  $9,786,582  and 
in  1917  of  $17,444,371.  Thus  it  is  seen  again  that  two-thirds  of  the 
mcrease  m  operating  income  was  carried  to  surplus  balance. 

In  view  of  what  has  already  beeti  said  regarding  the  amortizing  of 
tlie  nationalization  loans,  the  question  arises  as  to  the  disposition  of 
this  balance  to  surplus.  The  Japanese  Railway  accounts  do  not  make 
i!i?.  n^«\o^o"^  the  Item  shown  as  capitalization  March  31,  1913,  was 
f  4M,936,633  and  the  amount  shown  March  31, 1917,  was  $542,368  0'>8 
an  iiicrease  of  $77,431,375.  The  aggregate  amount  carried  as  surpFus 
for  this  same  period  was  $55,752,681,  leaving  a  difference  of  $21,678  - 
b94,  which  had  to  be  raised  from  some  other  source  than  railwav 
revenues.  -^ 

ROADWAY  AND  TRACK. 

The  roadway  construction  in  Japan  is  rather  diflacult.  Grades  up 
to  2  per  cent  occur  on  many  of  the  Imes,  and  in  numerous  cases  they 
exceed  this.  Ihe  alignment  as  a  rule  has  a  great  amount  of  curva- 
ture; in  some  cases  this  is  excessive  The  amount  of  tunneling  is 
probably  equal  to  that  of  any  other  similar  amount  of  railways  in  the 
world,  ihe  matter  of  drainage  and  roadway  protection  is  one  reqiiir- 
106220"— 19 11 


11)1 

m 


iirt 


BAILWAY  MATEBIALS,  EQUIPMENT,  AND  SUPPLIES. 


mg  an  unusual  amount  of  attention,  because  of  the  fact  that  many  of 
the  lines  run  through  rice-growing  areas,  and  on  account  of  the  slip- 
ping tendency  of  much  of  the  side-hill  ground  in  Japan  when  dis- 
turbed by  cuttings  and  embankments.  All  bridges  are  built  with 
very  large  openings  for  the  normal  water  flow.  This  is  on  account  of 
the  large  volume  of  flood  water  during  stol-m  seasons.  There  are  a 
good  many  very  long  bridges— sometimes  15  or  more  spans  of  con- 
siderable length.  The  greater  number  of  these  are  over  dry  channels 
during  ordinary  weather,  but  these  openings  are  sometimes  inadequate 
during  the  typhoon  seasons.  Conditions  in  Japan  and  China  in  these 
respects  are  in  many  ways  similar,  the  trouble  in  China  being  caused 
by  the  fact  that  the  heavy  rains  run  off  very  quickly  on  account  of 
the  lack  of  forests. 

Station  buildings  are  somewhat  along  the  lines  of  British  and 
American  practice  and  do  not  follow  the  general  type  of  Japanese 
architecture.  Figure  1  (the  frontispiece  of  this  book')  shows  the  cen- 
tral station  at  Tokyo,  which  is  modern  in  every  respect.  The  lower 
floor  is  used  m  a  station,  including  post  ofliee,  restaurant,  check 
rooms,  etc.,  while  the  top  floors  arc  used,  in  part,  as  a  very  com- 
fortable European-plan  hotel. 

The  track  arrangement  and  construction  are  Tery  similar  to  Ameri- 
can and  Canadian  practice,  although  the  details  of  track  material 
tend  toward  British  designs.  The  Japanese  oaks  and  hardwoods  are 
used  almost  exclusivelv  for  ti(>s  (sleepei-s),  and  the  track  as  a  rule  is 
liberally  ballasted  with  broken  stone  or  good  gravel.  As  in  Cliina, 
much  of  the  rock  ballast  is  broken  by  hand. 

Because  of  the  exclusively  left-hand  running,  all  signaling  is  left- 
handed. 

LOCOMOTIVES. 

The  total  number  of  locomotives  in  service  on  March  .31,  1917,  was 
2,727,  but  the  details  of  these  are  lacking.  On  March  31,  1916,  there 
was'a  total  of  2,661,  of  which  77  were  of  new  superheater  type  fur- 
nished by  contract  that  year.  During  the  same  year  16  light  locomo- 
tives were  transferred  to  the  light  railways. 

Of  the  2,661  locomotives,  1,197  were  of  tank  type  and  1,365  were 
of  ordinary  type  with  tenders;  62  were  Mallets,  25  were  Abt,  and  12 
were  electric  locomotives.  The  latter  were  used  on  a  34  per  cent 
grade  at  Kariuzawa,  where  there  are  26  tunnels  (all  of  considerable 
length)  in  a  distance  of  7  miles.  Of  the  above  locomotives,  2,272  use 
saturated  steam  and  389  are  superheaters.  For  the  superheater  loco- 
motives the  Friedman  (Austrian)  mechanical  lubricator  is  generally 
used.  Since  the  war  these  are  being  manufactured  in  Japan.  Figure 
37,  facing  page  163,  shows  one  of  the  passenger  locomotives  recently 
built  in  Japan.  The  reader  will  notice  that  there  is  no  bell  and  that 
the  engine  has  the  British  type  of  pilot  and  the  traction-engine 
type  of  whistle.  The  working  weight  of  this  engine  with  full  tender 
is  approximately  200,000  pounds,  and  the  maximum  over-all  height 
is  12  feet  6  inches.  The  largest  Mallet  now  in  use  weighs,  in  working 
order  with  full  tender,  approximately  220,000  pounds,  with  the  same 
maximum  over-all  height. 

The  present  locomotive  equipment  represents  a  decided  assortment 
of  different  makes.  Many  of  the  ordinary  locomotives  are  of  Ameri- 
can manufacture,  but  some  purchased  just  prior  to  the  war  were 


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INTENTIONAL  SECOND  EXPOSURE 


BAILWxVY  MATERIALS,  EQUIPMENT,  AFD  SUPPLIES. 

ifig  an  uiiiisual  amount  of  attention,  because  of  the  fact  that  many  of 
tlic  lines  run  through  rice-j;rowing  areas,  and  on  account  of  the  slip- 
ping tendency  of  much  of  the  side-hill  ground  in  Japan  when  dis- 
turbed by  cuttings  and  embankments.  AH  bridges  are  built  with 
vcM-y  liirge  openings  for  tlie  normal  water  flow.  This  is  on  account  of 
the  large  volume  of  flood  water  during  storm  seasons.  There  are  a 
good  many  very  long  bridges— sometimes  15  or  more  spans  of  con- 
sidtM-able  length.  The  greater  number  of  these  are  over  dry  channels 
during  ordinary  weather,  but  tlu^i'  openings  are  sometimes  inadequate 
during  tlu^  typhoon  seasons.  C'onditions  in  Japan  and  China  in  tlu^se 
respects  are  in  many  ways  similar,  tlie  ti-ouble  in  China  being  caused 
by  the  fact  that  the  heavy  rains  run  off  very  quickly  on  account  of 
tlic^  lack  of  forests. 
Station  buildings  are  somewhat  along  tlie  lines  of  British  and 
merican  practice  and  do  not  follow  the  general  type  of  Japanese 
chitecture.     Figure  1  (tlie  frontis|>iece  of  this  book)  shows  the  cvn- 


m 


tral  station  at  Tokyo,  which  is  modern  in  evei-y  respect.  The  low(^r 
floor  is  used  as  a  station,  including  post  oilice,  restaurant,  clieck 
rooms,  etc.,  wliik>  the  top  iloors  are  uschI,  in  part,  as  a  very  com- 
fort al )  I  (^  Euro|>ea  n-})l  an  hot  el . 

The  track  arrangement  and  construction  are  very  similar  to  AmcM'i- 
can  and  Canadian  practice,  although  the  di^tails'of  track  material 
tend  toward  British  designs.  The  rbipjinese  oaks  and  hartl woods  aro 
used  almost  exclusively  for  ties  (sleejx^rs),  and  the  ti-ack  as  a  I'ule  is 
lil)erally  ballasted  witli  broken  stone  or  good  gravel.  As  in  China, 
mncli  of  the  rock  I) a! last  is  l)roken  l)y  hand. 

Because  of  the  exclusive! v  left-hand  running,  all  si2:ualinof  is  left- 
handed. 

LOCOMOTIVES. 

Tlie  total  number  of  locomotives  in  service  on  Marcli  31,  1017,  was 
2,727,  l)Ut  the  details  of  tliese  are  lacking.  On  March  31,  19IG,  there 
was' a  total  of  2,661,  of  whicli  77  were  of  new  superheater  type  fur- 
nislied  by  contract  that  year.  During  the  same  year  16  light  h)como- 
ti\es  were  transferred  to  the  light  railways. 

Of  the  2,661  locomotives,  1,197  were  of  tank  type  and  1,36.")  were 
of  ordinary  type  with  tenders;  62  were  ^lallets,  25  were  Abt,  and  12 
were  electric  locomotives.  The  latter  were  used  on  a  3}  ])er  cent 
grade  at  Kariuzawa,  whore  there  are  26  tunnels  (all  of  consldenihle 
length)  in  a  distance  of  7  miles.  Of  tlie  above  locornoti\x^s,  2.272  use 
saturated  steani  and  389  are  superheaters.  For  the  superheattn-  loco- 
mot  ivis  the  Friedman  (Austrian)  mechanical  lul)iiccitor  is  generally 
used.  Since  the  war  thest^  are  being  manufactured  in  Ja|ian.  Figure 
37,  facing  page  163,  shows  one  of  the  passenger  locomotives  recently 
built  in  Japan.  Tlio  reader  will  notice  that  tlie  re  is  no  bell  and  that 
the  engine  has  tlie  British  type  of  pilot  and  the  traction-engine 
type  of  whistle.  Tlie  working  weight  of  tliis  engine  with  full  tender 
is  api>i*oximately  200,000  pounds,  and  the  maximum  over-all  height 
is  12  feet  6  inches.  The  largest  Mallet  now  in  use  weighs,  in  working 
order  witli  full  tender,  approximately  220,000  pounds,  with  the  same 
m.aximum  over-all  lieight. 

The  present  locomotive  equipment  represents  a  decided  assortment 
of  different  makes.  Many  of  tlie  ordinary  locomotives  are  of  Ameri- 
caii  manufacture,  but  soine  purchased  just  prior  to   the  war  were 


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JAPAN. 


163 


Special  Agents  Series  No.  180. 


FIG.  37.— JAPANESE-BUILT  SUPERHEATER   LOCOMOTIVE. 


FIG.  38.— SECTION  OF  GOODS  TRAIN  ON  JAPANESE  GOVERNMENT   RAILWAYS. 


made  in  Germany,  with  the  result  that  the  present  equipment  con- 
sists of  American,  British,  German,  and  Japanese  locomotives,  with  a 
mixture  of  the  corresponding  national  practices.  The  Japanese- 
built  engines  follow  rather  closely  the  general  British  practice. 

PASSENGER  CARS. 

As  already  mentioned,  passenger-car  equipment  is  built  on  the 
Widest  limits  consistent  with  stabihty  on  track  of  3-foot  6-inch 
gauge,  even  with  the  moderate  speed  of  the  Japanese  railways. 
1  his  equipment  includes  aH  the  classes  of  cars  needed  to  handle  the 
three  classes  of  passengers  traveUng,  including  sleeping  and  dining 
cars.  The  maximum  permissible  height  is  12  feet  6  inches  and  the 
maximum  outside  width  8  feet  10  inches;  and  the  present  maximum 
length  IS  approximately  56  feet  between  buffer  faces  and  36  feet 
between  kingpins  of  trucks  (bogies).  Ball  screw  coupUngs  of  the 
British  tyne  are  used  with  side  buffers.  Figure  36,  facing  page  2G9, 
shows  multiple  electrical  equipment  used  m  the  Tokyo  suburban 
service  and  illustrates  the  ball  couplers  and  buffers  used.  The 
passenger  rolling  stock  except  that  in  this  electrical  district  is  equipped 
with  vacuum  brakes.  The  freight  equipment,  however,  is  generally 
only  provided  with  hand  brakes  operated  by  side  levers  as  illustrateci 
by  figure  38. 

GOODS  WAGONS. 

The  term  "goods  wagons"  is  used  for  the  reason  that  a  very  lar^-e 
portion  of  the  freight  equipment  consists  of  four-wheeled  open  and 
covered  wagons,  as  illustrated  by  the  assorted  outfit  of  cars  shown 
In  figure  38. 

Wheels  on  all  equipment,  except  a  small  amount  of  American 
equipment,  represent  the  typical  British  practice  of  tired  wheels  with 
wrought  iron  or  steel  centers.  The  wheels  under  passenger  eq  uipmen t 
usuaUv  foUow  the  British  standard  of  42  inches,  but  there  is  a  con- 
siderable variety  of  wheels  under  the  goods  wagons,  these  being  in 
some  cases  as  small  as  24  inches  in  diameter. 

SERVICE  CARS. 

On  March  31, 1916,  there  was  a  total  of  942  service  cars  of  all  classes 
of  which  867  were  construction  cars—mostly  of  the  grading  type  to 
shovel  on  and  plow  or  shovel  off.  Twenty-three  were  snow  plows 
8  were  accident  cars,  and  all  of  the  others  were  gas  or  water  tank  cars' 
There  is  very  little  equipment  in  the  way  of  wrecking  or  special  work 
outfits  along  the  lines  of  recent  American  practice,  particularly  as 
regards  steam  wrecking  outfits. 

WORKSHOPS. 

in??^^!*^^®  ^^  workshops,  in  which,  for  the  year  ended  March  31, 
1916,  there  were  13,560  workshop  employees,  comprising  12,352 
workmen,  820  laborers,  and  338  coolies.  The  average  daily  waee 
for  the  above  year  was  35.34  cents.  "  »  j        & 

During  the  above  year,  after  some  two  years  of  centralized  con- 
trol this  was  abandoned  and  the  shop  control  was  decentralized 
by  being  returned  to  the  jurisdiction  of  the  several  divisions.  That 
IS  the  present  arrangement. 


k 


I 


r 


mm  I 


INTENTIONAL  SECOND  EXPOSURE 


JAPAI3'. 


163 


Special  Agents  Series  No.  180. 


FIG.  37.— JAPANESE-BUILT  SUPERHEATER   LOCOMOTIVE. 


FIG.  38.— SECTION  OF  GOODS  TRAIN  ON  JAPANESE  GOVERNMENT   RAILWAYS. 


Oil  tho 
foot   6-incli 


made  in  Germany,  with  the  result  that  the  present  equipment  con- 
sists ol  American,  British,  Gorman,  and  Japanese  locomotives,  with  a 
inixture  of  the  corresponding  national  practices.  The  Japanesc- 
built  engines  follow  rather  closely  the  general  Britisii  practice. 

PASSENGER  CARS. 

As  already  mentioned,  passenger-car  equipment  is  built 
widest  limits  consistent  with  stabihty  on  track  of  3-fooi  ^-...., 
gauge,  even  with  the  moderate  speed  of  the  Japanese  railways. 
I  his  efnupnient  includes  aH  the  classes  of  cars  needed  to  handle  the 
tliree  classes  of  passengers  traveling,  including  sleeping  nnd  dinincr 
cars.  Ihe  maximum  i>ermissible  height  is  12  feet  6  inches  and  the 
maximum  outside  width  8  feet  10  inches;  and  the  present  maximum 
length  is  approximately  o6  feet  between  buffer  faces  and  36  ^"eet 
hetwet^n  kingpins  of  trucks  (bogies).  Ball  screw  couplings  of  the 
British  tyne  are  used  with  side  buffers.  Figure  36,  facing  page  2G9, 
shows  multi])le  electrical  equipment  used  in  the  Tokyo  subur'oan 
service  and  illustrates  the  ball  couplers  and  buffers  used.  The 
l)assenger  rolling  stock  '  "     '  '      '  '     '        


with 


vacuum 


d 


ng  stock  except  that  in  this  electrical  district  is  equipped 
bmkes.     The  freight  equipment,  however,  is  genendlv 

only  iH'ovided  with  hand  brakes  operated  hy  side  levers  as  iUustrated 

by  figure  38. 

GOODS  WAGONS. 

The  terni  ''goods  wagons"  is  used  for  the  reason  that  a  very  lar<^e 
portion  ot  the  freight  equii)ment  consists  of  four-wheeled  open  and 
covered  wagons,  as  illustrated  by  the  assorted  outfit  of  cars  shown 
m  iigure  38. 

Wheels  on  all  equipment,  except  a  small  amount  of  American 
equipment,  represent  the  typical  British  practice  of  tired  wheels  with 
wrought  iron  or  steel  centers.  The  wheels  under  passenger  en  uinment 
usually  foUow  the  British  standard  of  42  inches,  but  tliere  is  a  con- 
siderable variety  of  wheels  under  the  goods  wagons,  these  beino-  in 
some  cases  as  small  as  24  inches  in  diameter.      ^  "^ 

SERVICE  CARS. 

On  March  31, 1916,  there  was  a  total  of  942  service  cars  of  all  classes 
ot  which  867  were  construction  cars^mostly  of  the  gradino-  tyi)e  to 
shovel  on  and  plow  or  shovel  off.  Twenty-three  were  snow  plows 
8  were  accident  cars,  and  all  of  the  others  were  gas  or  water  tank  cars' 
Ihere  is  very  little  equipment  in  the  way  of  wrecking  or  special  work 
outhts  along  the  lines  of  recent  American  practice,  ])articularlv  as 
regards  steam  wrecking  outfits. 

WORKSHOPS. 

1  oTi^Tu ''^^'^  ^^  workshops,  in  which,  for  the  year  ended  March  31, 
l.Ub,  there  were  13,560  workshop  employees,  comprising  12  352 
workmen  820  laborers,  and  338  coohes.  The  average  daily  wac^e 
for  the  above  year  was  35.34  cents.  "  ^        o 

During  the  above  year,  after  some  two  years  of  centralized  con- 
trol  this  was  abandoned  and  the  shop  control  was  deceptrali/ed 
hy  heing  returned  to  the  jurisdiction  of  the  several  divisions  That 
IS  the  present  arrangement. 


1'  •■ 


i|if ! 


164 


lAILWAY  MATEKIALS,  EQUIFMEJ^^T,  AND  SUPPLIES. 


JAPA2T. 


165 


The  most  importaot,  or  wliat  might  be  called  the  main  division, 
workshops  in  the  order  of  their  importance  are  as  follows:  Omiya, 
16  miles  north  of  Tokyo;  Takatori,  a  short  distance  west  of  Kol^e; 

Kokiira,  a  short  distance  west  of  Moji;  0-i,  in  one  of  the  districts  of 
Tokjfo ;  and  Naebo,  near  Sapparo  on  the  North  Island.  The  principal 
fiinetion  of  the  raihvay  workshops  is  to  make  all  classes  of  repairs  to 
all  classes  of  rolling  stock,  although,  as  stated,  some  manufacturing 
of  goods  wagons  and  passenger  cars  is  done  at  certain  of  these  shofis, 
particularly  the  04  workshop,  and  there  is  also  a  consideral)le 
tendency  in  all  of  the  larger  sho|)s  toward  the  manufacturing  of  track 
materials. 

FIISONNEL. 

A  directory  of  the  general  staff  and  division  staffs  is  given  on  page 
269.     Particular  attention  is  cdled  to  the  inspection  bureau  in  tlio 

Metropolitan  Life  B^uilding,  New  York  City,  which  is  specially  main- 
tained in  connection  with  the  purchasing  of  materials  in  the  United 

States. 

'The  designations  '  *  engineer"  and  *''  secretary  "  are  among  the  distin- 
guishing features  of  the  organization  of  the  Imperial  Government  Rail- 
ways of  Japan,  and  the  m,en  tlius  desigtiated  are  promoted  along  tlieir 

particular   lines,,    engineers   in   general    administrative   duties    and 

secretaries  along  secretarial  lines  of  work. 

STORES  ANB  PURCHASES. 

In  1913  a  centralized  system  of  stores,  with  a  controller  of  general 
stores,,  iras  put  into  effect,  but  in  1915,  after  two  years'  trial,  this 
was  found  unsatisfactory,  and  a  decentrahzed  arrangement  was 
adopted  by  wliich  the  business  was  placed  largely  under  the  control 
of  divisions.  Requisitions  for  stores  to  he  bought  are  prepared  by  the 
divisions  and  submitted  to  the  general  office  in  Tokyo,  which  handles 
purchasing  as  a  section  of  the  financial  bureau. 

Mention  has  already  been  made  of  the  proportion  of  foreign  and 
domestic  purchases,  but  in  this  connec^tion  it  seems  proper  to  quote 
from  the  1915  annual  report  as  follows: 

In  coMeqnenee  of  the  policy  of  encoiirasing  tlie  purchase  of  articles  of  home  manu- 
facture pursued  coiisisteutiy  by  the  Imperial  Government  Railways  with  the  idea  of 

Bupportmg  domestic  industr>',  the  value  of  orders  placed  in  Japan  has  steadily  riseu 
for  these  several  years,  with  the  corresponding  shrinkage  of  foreign  purchase. 

The  foreign  purchase  for  191&-16  indicates  a  setback  to  the  downward  tendency  of 
the  preceding  vears,  which  is  accounted  for  by  the  falling-of!  in  the  amount  of  domestic 
purchase  on  the  one  hand  and  on  the  other  the  abnormal  appreciation  of  prices  of 
imported  articles  due  to  the  exi^ncies  of  the  war. 

As  referred  to  under  the  caption  of  "The  War  and  Rolling  Stock  Materials,"  the 
war  Feriously  interfered  with  the  supply  of  raw  materials  and  finished  articles  from 
al)rr»ad,  particularly  in  ri^gard  to  steel,  iron,  and  other  metals,  which,  with  the  outbreak 
O'f  the  war,  jumped  to  practically  double  the  pre-war  level.  In  the  1914-16  year, 
li.  'wever,  the  rise  in  the  quotations  of  these  itenii  did  not  affect  materially  the  average 
•  ■.  ■  I  i>er  piece  of  the  supplies,  because  no  inconiiilerable  amount  of  stores  had  been 
( (Hitracted  for  before  the  wm.  In  the  following  year,  1915-16,  a  gain  of  more  than  50 
IM -r  cent  was  shown  in  the  average  cost.  The  dirficulty  was  further  aggravated  b v  t  lie 
i !..;:■  I eik;.ed  restriction  on  the  supply,  which,  m  .slated  above,  operated  to  'hamper  tlie 
execution  of  the  programs.  Notwithstandiiig  the  heavy  rise  in  the  price  of  iron, 
f  teel,  and  other  metals,  the  market  of  other  supplies  remained  comparatively  dull  down 
to  1915,  but  the  general  level  of  quotations  which  took  place  thereafter  resulted  in  the 
advance  of  30  to  100  per  cent  in  the  price  of  coal,  oils,  cement,  brick,  timber,  and  other 
staple  railway  materials.  The  changed  conditions  might,  indeed,  liave  brought  about 
eeriO'Ua^  derangement  in  the  railway  financeSj  were  it  not  for  the  fact  that  before  the  war 


orders  had  been  placed  for  the  whole  stock  of  coal  and  oils,  the  bulk  of  the  cement  and 
brick,  and  a  part  of  the  timber. 

Sleepers,  too,  rose  in  price  as  they  were  restricted  in  supply,  but  the  railways  maii- 
a.^ed  to  obtain  them  at  the  pre-war  price  under  the  coiiv'enient  arrangements  for 
securing  them  from  the  producers  direct  according  to  the  practice  in  operation  for 
several  years. 

Dr,  Y.  Shima,  chief  of  the  machinery  and  rolling-stock  bureau, 
made  a  trip  to  America  the  latter  part  o'f  1917  and  the  early  part  of 
1918  in  connection  with  the  purchasing  of  railway  materials.  One 
subject  to  which  Dr.  Shima  gave  special  attention  was  the  matter  of 
axles  and  wheels  and  other  parts  required  for  the  proposed  widening 
of  the  gauge. 


I 


f .  FtlfATE  lAttWA¥S  AffP  LIGHT  RAlLWAYa 

WT'lOmJCTION. 

It  is  not  easy  to  decide  how  mucli  space  should  b©  devoted  to  a 
consideration  of  private  railways  and  light  railways.  While  a  study 
of  these  feeder  railways,  which  have  been  built  for  the  development 
of  the  yarious  districts  that  they  serve,  would  doubtless  bo  interest- 
ing, it  is  not  felt  that  any  extensive  reference  would  be  justified  on 
account  of  the  small  amount  of  business  that  they  may  be  expected 
to  supply  (at  least  directly)  to  American  manufacturers.  At  times, 
however,  considerable  business  might  come  through  the  class  of 
Japanese  concerns  already  mentioned  (see  p.  141).  The  lines  are  all 
short.  In  no  case  is  there  as  much  as  100  miles  of  all  tracks  for  any 
eroup  of  these  roads,  and  they  are  generally  under  the  control  of 
local  Japanese  interests  and  management.  A  considerable  part  of 
the  requirements  in  the  past  has  been  supplied  by  the  Japanese  Gov- 
ernment Railways  in  the  shape  of  light,  second-hand  materials  or 
equipment.  All  mrcbases  of  new  krticles  must  conform  to  the 
specifications  of  the  general  administration  bureau  of  the  Imperial 
■Government  Railways.  Many  of  the  lines  are  built  through  very 
rough  country,  with  heavj  grades  and  sharp  curves,  generally  using 
light  rail,  some  of  which  is  second  hand  from  the  Government  Rail- 
wavs,.  The  gauge  of  a  .great  part  of  these  lines  is  3  feet  6  inches, 
althougli  there  is  a  very  considerable  amount  of  2-foot  6-inch  line,  as 
well  as  som,e  other  widths,  including  a  verj^  small  amount  of  4-foot 
Of -men. 

CONSTEUCTION  COST  AND  CAPITALIZATION 

The  private  railways,  which  are  all  of  3-foot  6-inch  gang  liad  cost 
on  March  31,  1916,  an  average  of  approximately  $55,500'  gold  per 
mile  of  line.  The  3-foot  6-inch  light  railways  cost  approximately 
131,500,  the  2-fooli  6-inch  railways  $17,700,  and  the  average  cost  of 
all  lines  was  130,530.  The  aggregate  construction  cost  of  all  these 
lines  is  shown  as  approximatelT  $53,231,440,  against  which  there  is 
outstanding  share  capital,  boncis,  and  floating  debts  of  $74,739,555, 
or  an  average  of  $42,866  per  mile  of  line. 

OPERATING  RESULTS  AND  .PROFITS. 

The  following  table  shows  the  performance  statistics  of  all  the 

Tivate  railways  and  light  railways  in  Japan,  treated  as  one  system, 
or  the  years  ended  March  31,  1912,  1914,  and  1916: 


Mi!(js  of  line  open 

M,iles  of  all  tmcka,. , 

Average  inileiif »  worked,  lor  year . .. 

Total  cost  of  comtruction  of  open  Tmm.. 

Coiistruciion  cost  per  mite  of  o|>en  liiMs. 


19U-12 


1913-14 


744..  5 
522.0 

120,626,611 
«M,114 


1,120.8 

1,365.2 

845.0 

•32,695,255 
129,172 


1915-16 


1,713.07 
2,111.37 
1,522.00 

$53,231,449 

Iil0,53!l 


166 


iP  JsLSTjnLJiJi  • 


167 


Items. 


Total  outstanding  capital  obligations 

Outstanding  capital  obligations  per  mile  of  open  lines 

Total  working  revenue , 

Total  working  expenses  and  taxes 

Net  income  (not  including  subsidies  received  and  with  no 

dividends  deducted) 

Fcrctmtage  of  expenses  and  taxes  to  working  revenues 

Daily  working  revenue  per  mile  of  line 

Daily  working  expenses  per  mile  of  line 

Operating  iucome  per  mile  of  line 

Operating  ratio  (percent) 


1911-12 


1913-14 


Niiniber  of  passenger  train-miles 

Number  of  goods  train-miles 

Number  of  mixed  train-miles 

Total  train-miles 


Number  of  passengers  carried 

Number  of  passengers  carried  1  mile 

Coaching  earnings 

Earnings  per  passenger  carried  1  mile. 


Numl)er  of  tons  (2,000  ptHmds)  of  goods  hauled . 
Numlier  of  toas  of  goods  hauled  1  mite 

Ooods  earnings 

Earnings  per  ton  carried  1  mile 


12,453,604 
$1,197,389 

$1,256,215 
51.2 


«3,r»57,0.'>5 
$l,f.9s,504 

$1,658,551 

53.4 


657,343 

332,052 

2,342,832 

3,332,229 

28,827,996 

209,422,229 

$1,625,600 

$0.0078 

2,9R3,664 
40,494,024 

$498,>4g8 
$0.0123 


575,794 

387,223 

3,497,893 

4,460,910 

39,2fi7,in6 

280,83«,412 

$2,322,469 

$0.0083 

4,237,637 

56,396,894 

$892,973 

$a0158 


1915-16 


$74, 739, 555 
$42,866 

$4,903,294 

$2,69t>,065 

$2,207,229 
55.0 

$8,959 

$4,844 

$3,966 

53.9 

743,111 

563,303 

6,518,231 

7,824,645 

51,390,295 

361,913,312 

83,123,712 

to.  0086 

5,790,479 

76,263,090 

$1,340,  )^16 

$0.0176 


About  two-thirds  of  the  earnings  are  from  passenger  business  and 
one-third  from  freight  and  sundry  receipts.  The  average  ride  per 
passenger  for  1915  was  9.6  miles  on  the  private  railways  and  5.9 
miles  on  the  light  railways,  the  average  for  the  two  being  7  miles. 
The  average  earnings  per  passenger  mile  for  the  private  railways  and 
the  light  railways  were  0.86  cent.  The  average  haul  of  freight  was 
18  miles  for  the  private  railways  and  11  miles  for  the  light  railwa^-s, 
averaging  13.2  miles  for  both.  The  average  earnings  per  ton-mile 
for  the  "(ii-ate  railways  were  1.49  cents  and  for  the  light  railways 
1.93  cen'  ,  "the  average  for  both  being  1.76  cents. 

The!\€Tnings  of  the  private  railways  for  the  year  ended  March  31, 
1916,  aggregated  $1,654,487  and  of  the  light  railways  $3,248,807,  or 
a  total  of  $4,903,294.  The  working  expenses  and  taxes  Df  the 
private  railways  aggregated  $710,396,  leaving  a  profit  of  $944,090, 
equal  to  about  6.3  per  cent  on  the  cost  of  construction.  The  work- 
ing expenses  and  taxes  of  the  light  railways  totaled  $1,985,669, 
leaving  a  profit  of  $1,263,139,  which  amounted  to  about  3.4  per  cent 
on  the  cost  of  construction.  The  profit  on  the  cost  of  construction 
for  both  the  private  railways  and  the  light  railways  was  about 
4.2  per  cent,  which  was  an  increase  of  about  1  per  cent  over  that  for 
the  previous  year. 

Under  the  provisions  of  the  Light  Railway  Law  promulgated  in 
1911  and  revised  in  1914,  the  privately-owned  light  railways  are 
gua-ranteed  a  profit  of  5  per  cent  on  the  cost  of  construction  for  a 
period  of  19  yeai-s  after  the  date  of  opening  of  business.  Under  this 
provision  53  of  these  lines,  whose  construction  cost  aggregated 
$15,133,270,  did  not  earn  the  necessary  amount  to  pay  this  5  per  cent 
guaranty,  and  the  sum  of  $499,876  was  paid  these  53  companies,  the 
funds  being  suppHed  from  the  budget  of  the  Imperial  Government 
li  ail  ways. 

The  private  railways,  after  payment  of  all  interest  and  other 
income  charges,  showed  a  net  profit  of  $984,469,  of  which  $866,183 


I 


RAILWAY  MATERIALS,  EQUIPMENT,  AKD  SUPPLIES. 

was  i>aid  in  dividends  and  tlie  remainder  earried  to  surplus  balanro- 

The  light  railways,  including  the  1449,876  paid  them 'in  snbsidirs, 
showed  a  net  profit,  after  payment  of  interest  and  ot.her  iiicofu''' 
fharges,  of  11,1,91,450,  of  which  11,033,942  was  paid  in  diYide]u;:s 

iind  ilie  remainder  carried  to  surplus  balance.. 

EMPLOYEES  AND  WAGES. 

As  shown  by  the  table  on  page  1.52,  tlie  private  railwa3^s  had  2,GSl 

employees  for  the  year  ended  March  31,  1916,  of  whom  46  wvn^ 
directora  or  officials  and  2,639  were  wage  employees.  The  light  rail- 
ways had  9,810,  of  whom,  883  were  directors  or  officials  and  8,927 
wage  employees.  The  average  monthly  wage  of  the  officials  of'  tlie 
private  railways  was  $34.09  and  tliat  of  the  wage  employees  $5.64, 
milking  the  average  monthly  wage  of  all  emplovees  $7.94.  There 
were  seven  of  the  directors  of  private  railways  who  received  no 
compensa.tion  in  the  way  of  salary;  tlie  remaining  directora  and 
officials  of  the  light  railways  received  an  average  monthly  salarv  of 
S7..57  and  the  wage  employees  received  $6.74,  making  the  average 
monthly  wage  of  ail  employees  of  light  railways  $7.30. 

OFFICL4,LS~FURCHASES. 

'Tlie  writer  ireiit  O'Ver  the  situation  to  determine  whether  it  was 
nracticable^  to  locate  these  lines  and  prepare  a  directory  of  officials*-, 
Init  decided  that-  it  y^"ould  he  \-ery  difficult  and  take  a  great  deal  of 
time,  and  tliat  the  lists  wlien  finished  would  probably"  be  of  small 
vidue,  so  no  attempt  has  been  made  to  show  the  location  of  these 
various  lines  or  to  give  lists  of  their  officials. 

Purchases  of  most  of  these  lines  are  han-dled  in  a  very  scattered 
way  and  almost  entirely  through  Japanese  concerns,  although  somo 
of  the  equipment  has  come^  from  abroad,  particularly  the  small  loco- 
motives, c|uite  a  numbcsr  of  which  are  of  German  manufacture. 


VI.  TRAMWAYS. 

INTRODUCTION. 

With  136  concerns,  1,255  miles  of  line  in  operation,  and  289  miles 
iiiMfor  construction  on  March  31,  1916,  it  wiU  be  seen  that  there  is  at 
frcseut  an  average  of  less  than  11.4  miles  of  line  for  each  tramway 
This  is  sufFicient  to  indicate  that  a  great  deal  could  be  said  about  the 
tramway  situation  in  Japan.  However,  the  remarks  regarding  the 
jTivate  radwaj-s  and  light  railways  apply  to  a  considerable  extent  to 
the  tramways,  except  that  special  lines  of  American  products  are 
employed— principally  electrical  equipment,  which  has  been  exten- 
sively used  m  the  past  and  probably  will  be  ih  the  future.  The 
Imancial  results  of  these  lines  are  also  interesting,  as  an  indication  of 
what  might  be  expected  from  tramways  in  certain  parts  of  China. 

EXTENT  OF  LENTES. 

The  following  table  shows  the  performance  statistics  of  all  clashes 
of  Japanese  tramways  for  the  year  ended  March  31,  1916: 


Items. 


Kind  of  tramway. 


Electric. 


Number  of  companies 

Miles  of  line  open 

Miles  of  line  under  construction. 

Comtniction  cost  per  mile  of  line 
of  transportation  property 

Total  construction  cost  of  trans- 
portation property 

Total  construction  cost  of  pro|> 
erty  of  outside  undertakinsjs . . . 

Total  construction  cost  Oi''  all 
property 


Total  outstanding  capital  liabili- 
ties  

Total  outstanding  capitalliabiiil' 
ties  per  mile  of  line 


Total  working  revenue 

Total  working  expenses  and  in- 
terest charges 

Net  income  (no  dividends 'de^ 
ducted) 


Daily  working  revenue  per  mile 
of  open  line 

Daily  working  expenses  per  mile 
of  open  line 

Daily  operating  income  per  mile 
of  open  line 

Operating  ratio per  cent  ] . 

Working  revenue  per  vehicle-mile. 

Working  expenses  per  vehicle- 
mile  

Operating  income  i)er"  vehicle^" 
mil© 


64 

667. 66 
232.62 


$163,060 

1108,868,838 

$29,224,195 

«138,093,033 

$155,305,675 

$232,612 

$19,275,165 

$12,650,832 

16,624,333 

156.23 

$26. 30 

•29.93 
46.8 

$0. 116 

$0,054 

$a062 


Steam. 


CJas  motor. 


22 

211. 65 

3&34 


$11,793 

$2,495,937 
$103,891 

12,659,828 

$3,553,200 
$12,650 

$382,793 
$249, 406 
$133, 3S7 

$5.29 

$3.30 

$1.99 
62.4 

$0,114 

f  0.071 

$a043 


4 

60.56 
2.07 


$15,680 

$949, 538 

$5S,610 

$1,008,148 


Horse. 


$148, 507 

$104, 812 

$43, 695 

$6.40 

$3.98 

$2.42 
62.1 

SO.  082 

$0. 051 

$ao3i 


34 

244. 18 

12.36 


$4,328 

$1,056,749 

$31, 515 

$1,056,749 

$1,404,738 

$5, 785 

$290,074 

$254,405 

$35, 663 

$3.08 

$2.55 

?0.53 
83.0 


Man  power. 


14 

70.40 

3. 3 


16,007 
$317, 158 
$105, 719 

$422,877 

$576,880 

$8,1W 

$171,623 

$149, 028 
$22, 595 

$3.60 
$2.86 

10.83 

77.4 


HI 


m 


169 


170        :eailwat  materials,  eqitipim'ext,  afd  supplies. 


Items. 

— — • a 

Kind  of  tramway. 

Elactrlo. 

Steam. 

Gas  motor. 

Horse. 

Ma,n  power. 

NiimlDer  of  ptesengers  carried 

rassenger  earnings 

Earnings  iier  pusaenpr  ■carried... 

Kiimter  of  tons  (2,000  pwmds) 

.  of  Roods  hatilod , 

*;!  oods  earninp , . . , 

Einiiup,  p«r  ton,  of  goods  liiiiiled: 

Ni!  mfcer  of  looomoliTDs 

Niiiater  of  mrriigeis , . . 

K  umlwr  of  gcwda  wagons 

tl2„«,l57 

taoits 

524,337 
ilWi,Ml 

5 

S,U9 

251 

S,42S,420 

$302J>I5 

$0.0470 

3ai,,S77 
$(,18,327 

111223 

,1.47 
I« 
301 

2.S22,ro2 

1112,298 

$0.0398 

a\  124 

$2<'>.  MVI 

m,  294 

» 

88 

133 

J 

4.0«4,»aj 

$1»,0I7 

10.0465 

M9,2.S.'J 
Hit.  7S8 

$o.,3n 

"'* W 

677 

277. 149 
$12, '991 
•0.047& 

401,. W 

$74,11.'! 

$0.  tvS3 

in 

51,9 

The  668  miles  J  electric  tramways  are  the  most  important  and  will 
he  prm,cipaly  reierred  to  in,  this  text.  The  largest  tramway  center 
at  present  is  the  (h&ku  district,  where  there  arc  now  more  than  250 

m,il,cs  of  line  cmnectm^'  Osaka  with  Kyoto,  Kohe,  Fara,  and  other 
parts  of  tks  the  most  important  industrial  d,istriGt  of  Japan.  Next 
m  importance  is  the  Tokyo  district,  with  81  m„iles  of  line  and  46  5 
miles  under  con,st ruction  in  the  city  of  Tokyo,  al  under  municii^al 
m,ajia|jeniont— m  addition  to  a  ,nura,bep"  of  other  private  tranmaVs 
inchiclmg  one  to  Yokoh.am,a.  Co,iisiderioR  the  imiiortance  of  tlio 
lloji  industrial  d„istrict,  it  has  at  present" a  very  limited  tramway 
BeiT,ice,,  there  hei,ng  only  one  line  of  about  20^  ,miles,  from  Moji  tii 
lino.  ^  ,rhe  entire  length  of  this  lino  parallels  the  water  front  which  is 
a  contmiioTO  Ime  of  industrial  plants,  one  of  'tliem  heino*  the  Japanese 
Im,|)erial  Steel  Works  ,In  addit,ion,  to  the  Tokyo  system,  the  Osaka 
atv  system  of  35  m,des,  the  Kyoto  city  lines  "of  15  miles,  and  the 
liobe  city  hues  'oi  15  m,iles  are  all,  now  municipally  owned  and  oper- 
fl'®.*!*  ^  the^other  lines  are  priyately  owned  and  operated.  Tli© 
Keihan  C-o,,  with  33.7  ,miles  in  the  Cteaka  district,  has  the  srentmt 
m,iJeag:e  of  any  of  the  private  companies. 

The  loiigest  steam  tramway  linc'is  29.7  m,il€s,  the  longest  jr'ap-m,otor 
line  IS  32.2  miles,  the  !on.g-est  horse  h,ne  is  1,5.8  miles,  aiid  the  loncrest 
man-power  line  is  18.25  miles.  ,     •.     t  il  lun^esc 

On  March  31,  1916,  there  w:a8  under  construction  232  62  miles  of 
taie  of  all  classes,,  but  there  was  projected  at  that  time  a  \'ery  consider- 
able additional  m,ile,age,  mmhut  which  will  probably  be  built  in  the 
next  few  years.  It  seems,  entirely  safe  to  predict  that  the  present 
mileage  ot  electric  ,lmes  will  be  very  considerably  increased  'in  ^tho" 
n,ear  future.  '  ' 

.HISTOmCAL  SlIKVEY. 

Tli,e  foBowing  from,  the  annual  rejwrt  of  the  Imperial  Go\'e,rnment 

Itailways  of  Japan  for  tlie  year  ended  March  31,  1916,  is  a  brief  state- 
ment ot  the  histo,ry  of  the  tramway  deyelopnient: 
The  Japaiieee  tramwayB  date  imm  1880,,,  when,  in  Febniary  an  application  was  ten- 

fSJ.l n^^^^^^^^  '^  '^*  '^f  ^'"i  '^^T  T^'"/'^-*^  li«-    C  applies  wL 

nanftionwi  and  the  hue  waa^  completed,  and  opened  for  traffic  in  June  1883     Thw 

w:a8  Boc»n  ,fQl,l,owed  by  othen  in  rajiid  succession,  and,  esp^ecially  since  1888*  everv 
year  mtnefleed  applications  for  four  or  five  horse  tramway  nndertakinge     The  imuk 

was  the  promulgation  of  the  Tram,way  B.e|;ii,lat,ioi e  by  law  Ko.  71.  on  August  n  1891 

by  wtue  of  which  horee  tmm,wa)fs  and  similar  meana  of  tran8portat,ion  to  be  laid  on 
public  roadi  for  general  traffic  came  to  be  authorized  8ul,;jcct  to  the  special  sanction  of 
the  MmiBter  of  lIo,me  Affaii-a.    On,  October  22,  ims,  it  wm  proviSenrimpSkl 


JAPAK. 


171 


Ordinance  No.  266  that  application  for  the  conetniciion  of  tramways  under  the  Tra,m- 
ways  Orders  should  also  obtain  the  sanction  of  the  Minister  of  Communications;  this 
was  subsequently  revised  by  Imperial  Ordinance  No.  307,  whereupon  the  control  of 
the  tramways,  as  to  construction  and  working,  came  under  the  charge  of  the  Imperial 
Government  Railways. 

As  alread;^  mentioned,  the  control  and  re;]:ulation  is  handled  by  the 
general  administration  bureau  of  the  Goy eminent  Railways.  It  is  a 
matter  of  interest  that  the  first  cars  used  on  this  horse  tramway  in 
Tokyo  in  1883  were  secondhand  cars  purchased  from  one  of  the  ^ew 
York  City  street  railways.  These  were  used  in  Tokyo  until  the  lines 
were  electrified,  after  which  these  cars  and  a  quantity  of  light  rail  were 
sent  to  Mukden,  in  Manchuria,  where  they  are  still  in  sen  ice  on  the 
4  miles  of  horse  tramways  running  from  the  railway  statioii  to  the 

west  gate  of  the  inner  walled  city.  <> 

I, 

CONSTRUCTION  COST  AND  CAPITALIZATION. 

The  total  construction  cost  of  the  667.66  miles  of  electric  tramways 
was  $138,093,033  up  to  March  31,191 6,  but  of  this  amount  eS29,223, 195 
was  the  cost  of  outside  undertakings,  leaying  the  construction  cost 
of  transportation  property  as  $108,869,838,  or  about  $163,060  per 
mile  of  line.  Of  this  amount,  $88,575  represents  expenditures  for 
permanent  way  and  146,965  expenditures  for  rolling  stock,  power 
equipment,  and  buildings,  leaving  $27,520  for  general  expenditures, 
\\4iich  is  the  account  carrying  promotion  expenditures  and  other 
similar  expenses. 

On  the  aboye  date  there  was  outstanding  $131,656,901  in  capital 
shares  and  $23,648,774  in  bonds  and  floating  indebtedness,  making 
the  total  outstanding  capital  obligations  $155,305,675,  or  about 
$212,700  per  mile  of  line.  Tlie  capital  item,  however,  as  shown  in 
the  1916  annual  report,  is  only  $131,656,901,  but  this  does  not  include 
the  outstanding  bonds,  loans,  and  floating  indebtedness. 

Separating  the  capital  allowed  by  prorating  the  construction  costs 
makes  the  amount  to  the  transportation  properties  approximate 
$183,500  per  mile  of  line,  on  which  amount  the  Japanese  electric 
tramways  are  paying  returns  in  the  form  of  interest  or  dividends 
amounting  to  about  5  per  cent.  These  figures  strongly  support  the 
statement  that  electrified  lines  of  light  railwa3^s  should  be  successful 
in  the  densely  populated  parts  of  China,  particularly  when  it  is  con- 
sidered that  the  average  fare  per  passenger  in  Japan  is  slightly  less 
than  2  cents  gold  per  ride. 

TRAFFIC  AND  RATES. 

On  the  electric  lines  the  traffic  is  about  97  per  cent  passenger 
travel  and  3  per  cent  goods  business.  This  division  of  trafiic  varies 
greatly  between  the  different  lines.  About  50  per  cent  of  the  lines 
do  no  goods  business,  among  them  being  most  of  the  city  systems 
such  as  those  in  Tokyo  and  Osaka.  On  some  of  the  small  (but  in 
some  cases  important)  hues  the  goods  business  constitutes  about 
50  per  cent  of  the  traffic,  varying  from  this  figure  down  to  a  small 
percentage  of  the  total. 

For  the  year  ended  March  31,  1916,  the  average  earnings  per  pas- 
senger on  all  the  electric  lines  was  1.98  cents,  and  the  average  earnmcrs 
per  ton  (2,000  pounds)  of  freight  was  31.8  cents.     The  average  earn- 


I'M 


I 


I 
l! 


172  RAILWAY  MATERI.VLS,  EQUIPMENT,  AND  SUPPUES. 

ings  por  passengpr  and  per  ton  of  freio:ht  are  shown  by  the  tahlo  on 
page  70  and  it  .s  mteresting  to  note  that  a  ton  of  freJght  is  moved 
with  the  lowest  earnings  on  the  man-power  or  "ricksha"  lines 

As  regards  tlie  fares  on  the  electric  lines,  there  is  a  variety  of 
arningements.  /one  fares  are  used  only  to  a  limited  extent  in  Jaoan 
an,l  h«t  and  so,;ond  class  fares  also  prevail  only  in  a  few  imtaX"' 
Jl,e  Tokyo  nnm.cpa  system  has  a  eisen  (3-cent)  fare  tr  a  onow  .; 
ri.le  with  transfer  and  a  10-sen  (5-cent)  fare  for  a  round-trip  ride  nls^, 
mo ludmg  transfer.  In  practice  this  an-angement  seemi  to  work 
an  |- v^rw'!v  «"f';  f'""J"«has  are  Used  generally  in  all  the  ,itu-. 
^   f  fi     I   ,i     ««»-t"-<^o  Japanese  or  foreigner  ride  on  tlic  tramways, 

u    the  latter  arc  used  very  extensively  by  tl.e  working  people  in  tu 
1  ulustr.al  r  istncts.     Most  of  the  interiban  hnes  Tiave    tcr mi  i 

tto  to^ini  and  I't  uZrl  iV  ''"^^"^  ^"^^=  '^'■^'^'^  aro^ouTt 
uu.  terminals  and  at  most  of  the  important  stations,  but  at  otlipp 

points  collections  are  made  on  cars,  bn  some  of  the  ines  on  which 
the  writer  rode  he  was  unable  to  determine  how  an  accurate  check-uD 
of  fares  could  bo  accomplished.  ^ 

EARNINGS  AND  EXPENSES. 

For  the  vear  ended  March  31,  1916,  the  total  traffic  revenue, 
me  udmg  miscellaneous  items,  of  the  electric  lines  were  $13  Oo"   88 

and  earnings  from  outs  de  undertakings  and  inv-nctm^^io  V 
^« 'iT-i  077  %„„i.:„  .1  "''""""  w;jviiigs  ana  investments  were 
Sb.-<,>,9//,  making  the  total  gross  income  $19,275  165  Working 
expenses  amounte<l  to  «fi  07f>  irr;  oVr.i>r.o«„  ^r  «..*  -j  i  "",'^"'g 
tntnlnH  *•>  iiRKAi-i  ,"  f"?."/ o» J "0,  expenses  of  outside  undertakings 
totaled  $2M5,44S,  and  interest  charges  amounted  to  S3  709  '^S-I- 
representing  a  total  .leduction  from  ^oss  earnings  of  $12  650  83" 
r?,i:r:"^  *  r°^ii  °^  *6,624,333,  or  6.4  per  cent  on  ti;'  cost  of 
c.M,stru(Uon  after  the  payment  of  all  fixed  charges.  The  above 
results  give  an  operatmg  ratio  of  46.8  per  cent  for  &e  electrL  laiL! 

Sn  b^theTK?  ;Sl6^!  ^-^  "^^-  '"^^  °^  ^--^^  - 


siffei 
th 


EMPLOYEES  AND  WAGES. 

Of  the  14,538  electric-line  employees  on  March  31    lOifi    >;  qro 
were  conductors  and  5,003  were  motormen  or,  as  thev' are  called  in 
Jaoan   "dnv^.'      The  writer  was  unable  to'obta  n  what  he  con 
";  s'sniSt  :  tt"^   ■•'^^['^'"S  ^T"     ^°  'J^t*  °°  the  detaiinf 

ent  Railways!  ^         ""  ""'"'     '"^P*"'*  ''^  ^^^  ^'"P^"*!  «°^ern- 

SOADWAY  AND  TRACK. 

to  WwX'f  1'°".^  T*"?  '■***'^'"  '*'««">*  ^  JiP«n,  as  applying 
to  both  city  and  mterurban  lines,  on  account  of  the  limitations  in 
seeurmg  adequate  right  of  way  or  sufficient  room  on  stree^and  roLs 
many  of  which  are  crooked  and  narrow.  Most  of  th^  older  ^^^r' 
urban  hnes  were  indiflFerently  located  and  constructed  but  some  of 
st'nic"?e7  L'^illnlrr  ^r  .^^?  ^'f  ^"^^"^  '^^  subsiLTy"eon! 

SL^^s'Xoutri  mfle^tle^^lk^"''  '''^'''-''-^  tunnjls,  Zetf 


JAPAm 


173 


The  track  work  on  all  the  lines  is  very  similar  to  the  ordinary 
American  practice^  and  a  considerable  amount  of  the  special  work  is 
of  American  ma nnf act ure.  A  great  variety  of  gauge  has  been  used, 
hut  h  majority  of  the  lines  are  4  feet  8J  inches.  The  rail,  as  one 
might  expect,  is  of  verjr  great  variety  of  weight  and  section.  The 
overhead  construction  is  mostly  along  American  lines,  with  the 
ordinary  single  trolley.  In  a  few  instances  pantagraph  contacts 
are  used. 

ROLLING  STOCK. 

As  would  naturally  he  expected,  there  is  a  great  variety  of  rolling 
stock  on  the  different  lines,  but  many  of  the  trucks  and  car  frames, 
as  well  as  a  considerable  number  of  the  car  bodies,  have  been  fur- 
nished in  the  past  by  American  manufacturers.  There  are  several 
concerns  in  Japan  that  have  been  paying  close  attention  to  the 
furnishing  of  tramway  rolling  stock  in  recent  years,  one  of  the  most 
important  being  the  Tokyo  Works  of  the  Kisha  Seizo  Kaisha. 

There  is  a  very  great  variety  of  electrical  equipment,  but  a  major- 
ity of  the  motors  and  control  are  of  American  manufacture,  furnished 
mostly  by  the  companies  that  have  connections  with  Japanese  com- 
mercial and  engineering  contracting  concerns.  A  very  noticeable 
amount,  however,  of  other  electrical  equipment  has  been  used,  par- 
ticularly German,  English,  and  Swedish,  in  the  order  named. 

POWER  PLANTS  AND  SUBSTATIONS. 

Practically  the  same  remarks  can  be  made  about  the  power-house 
and  converter  equipment  as  about  the  electric  car  equipment.  At 
present  most  of  the  power  is  furnished  by  steam  plants,  but  there 
appears  to  be  a  decided  tendency  in  such  situations  as  the  Osaka 
district  to  connect  up  to  central  power  plants,  and  there  is  also  a 
strong  tendency  to  utihze  hydroelectric  sources  where  such  are 
available. 

OFFICULS— PURCHASES. 

Tlie  writer  spent  considerable  time  in  determining  what  could  be 
done  m  the  way  of  the  preparation  of  a  directory,  and  although  this 
was  found  to  be  practicable  for  some  of  the  more  important  lines,  the 
results  as  a  whole  were  such  that  it  was  decided  not  to  attempt  to 
include  the  usual  directoiy  for  any  of  the  tramways.  The  mun^pipal 
tramways  in  each  case  are  under  the  general  dkection  of  the  mayor. 

The  large  systems,  particularly  at  Tokyo,  Osaka,  Kyoto,  and  Kobe 
(all  municipally  operated),  and  the  Keihan,  Nagoya,  and  other 
similar  privately  owned  hnes,  have  organized  purchasing  branches, 
and  while  many  of  the  requirements  have  been  and  will  continue  to 
be  supplied  from  American  sources,  this  business  is  closely  controlled 
l)y  the  concerns  now  handling  it.  Large  electrical  companies  are  not 
only  represented  in  all  cases  by  strong  Japanese  commercial  com- 
paiues,  but  as  a  rule  they  have  their  own  representative  in  Japan 
cooperating  with  these  Japanese  concerns.  Further,  some  of  the 
most  prominent  American  electrical  companies  have  established 
well-equipped  factories  in  Japan,  which  are  not  only  handling  the 
Japanese  business  but  in  some  instances  are  sendmg  their  products 
to  China,  Manchuria,  and  Korea. 


Part  3.~CH0SEN  (KOREA). 

I.  GENERAL  INFORMATION. 

INTRODUCTION. 

Cliosen  (Korea)  is  an  elongated  peninsula  between  33®  and  43® 
north  latitude  and  124°  and  131°  east  longitude.  Its  length  from 
northwest  to  southeast  is  about  900  miles,  and  its  width  from  north- 
east to  southwest  is  something  less  than  250  miles.  Its  area  is 
approximately  84,100  square  miles,  or  about  the  same  as  that  of  the 
State  of  Minnesota. 

The  estimates  of  the  population,  as  in  the  case  of  most  oriental 
countries,  vary  considerably,  but  roughly  it  may  be  said  to  comprise 
about  16,000,000  Koreans,  15,000  or  20,000  Chniese,  1,100  to  1,200 
Europeans  and  Americans,  and  something  less  than  500,000  Japa- 
nese. 

The  climate  for  the  greater  part  of  the  yeiir  is  mild  and  dry.  The 
northern  and  central  parts  of  the  country  have  cold,  dry  winters. 
There  is  a  rainy  season  of  something  over  a  month  beginning  with 
great  regularity  before  the  middle  of  July  and  lasting  until  after  the 
middle  of  August.  During  this  period  the  weather  is  hot  and  con- 
siderable humidity  prevails. 

The  fauna  of  Chosen  includes  several  species  of  deer,  the  tiger, 
leopard,  wild  boar,  bear,  wolf,  fox,  and  numerous  fur-bearing  animals, 
among  which  the  sable  and  sea  otter  are  the  most  valuable.  Game 
birds  of  considerable  variety  and  all  kinds  of  domestic  fowls  abound. 
The  entire  peninsula  is  well  stocked  with  cattle,  horses,  and  pigs. 

The  history  of  Chosen  goes  back  many  centuries,  like  that  of  China. 
One  of  the  results  of  the  Russo-Japanese  war  was  the  establishment  of 
a  protectorate  over  Korea  by  Japan,  this  being  followed  by  annexa- 
tion August  1,  1910.  Chosen  is  now  administered  by  a  resident 
Japanese  Governor  General,  the  administration  being  under  the 
Colonial  Department  of  the  Imperial  Government  of  Japan. 

PRODUCTS  OF  THE  COUNTRY. 

In  the  past  Chosen  has  been  largely  an  agricultural  country,  with 
rice  the  leading  product  and  beans,  oats,  and  wheat  raised  in  con- 
siderable quantities.  Lumber  from  northern  Chosen  is  also  an 
important  product,  but  the  cx^ntral  and  southern  sections  have  been 
largely  denuded  of  timber  and  extensive  afforestation  by  the  Japa- 
nese authorities  is  now  under  way. 

Coal  is  now  the  principal  mineral  product,  and  for  the  year  ended 
March  31,  1916,  it  constituted  the  largest  item  of  traffic  over  Korean 
railways.  The  largest  deposits  at  present  developed  are  those  near 
Pingyang  (Heijyo),  about  half  way  from  Seoul  to  Antung,  near  the 
main  line  of  the  Korean  railways.  Considerable  quantities  of  copper, 
gold,  and  graphite  are  produced — the  copper  in  increasing  quantities. 

175 


^Mli      .J——       >-*    ■ 


176  BAIL  WAY   MATERIALS,  EQUIPMEXT,   AXD  SUPPLIES. 

Tlie  do:Vf»lopnieiit.  of  iron  iniiiiiig  is  being  energetieally  pursued  near 
PiiigTaii|,,  where  a  Japanese  company"  is  erecting  l)last  furnaces, 
wliicli  will  depend  entirel}^'  upon  Korean  and  Mancluiriau  ores  and 

fuel. 

Tlie  principal  Korean  exporte^  are  beans,  ores,  and  rice;  tbe  prin- 
cipal imports  are  coal,  sugar,  tobacco,  and  manufactured*  articles. 
Trie  exports  for  tbe  five  years  from  1911  to  1916  were  practically  the 

sfime  from,  year  to  year,  but  tbe  imports  increased  anout  fourfold. 
Many  of  tlie  gO'Ods*  represented  by  this  increase,  particularly  the 
r.iihviiy  ecjuipment,  came  from  American  sources,  being  handled 
liirgely  by  Japanese  concerns  or  American  concerns  with  branches  in 

Japaii. 

MANOTACT0EING. 

Little  modern  manufacturing  is  done  in  Chosen.  Korean  railwaA^s 
liave  complete  workshops  at  Kynsan  near  Seoul,  and  there  is  a  teii- 
dency  to  d;0  a  very  considerable  amount  of  their  own  manufacturing 
in  these  shops.    The  tramways  in  Seoul  are  also  doing  most  of  their 

own  car  building  at  present,  buying  the  necessary  parts  where  they 

can  be  obtained  to  best  advantage, 

TRADE  CENTERS. 

Seoul  (Keijyo)  is  the  capital  and  principal  business  center  of  Koix\a; 
Chemulpo  (Jinsen),  25  miles  by  rail  from  Seoul,  is  the  principal  port, 
but  Ftisan  is  the  southern  t.ermlnus  of  the  Korean  railway,  and  for  this 
reason  is  of  growing  importance,  particularly  as  it  is  only  about  10 
hours'  run  for  ve^ssels  from  Shim,onoseki.  Shingishu  (across  the  Yalu 
River  from  Antnng),  tlie  northern  terminus  of  the  Korean  railway,  is 
also  of  growing  commercial  importance,  particularly  on  account  of 
its  harbor  at  the  mouth  of  the  Yalu  River  and  the  lumber  coming 
down  this  river  from  the  northern  parts  of  Korea.  Pingyang  (Heijyo) , 
on  account  of  its  fuel  and  mineral  resources,  will  probably  become 
one  of  the  important  industrial  centers  of  Chosen,  and  this  will  cause 
additional  de 
comiected  by 


CHOSEIT. 


177 


evelopment  of  the  already  important  port  of  Chimiampo, 
y  a  35-mile  branch  railway  with  Pingyang. 


LABOR  CONDITIONS. 

Physically  the  native  Koreans  resemble  in  general  the  northern 
Chinese,  and  when  properly  handled  make  fairly  good  workmen  for 
many  lines  of  heavjr  industrial  work. 

of  the  531  officials  of  various  grades  in  the  employ  of  Korean  rail- 
wiiys  ^farcli  31,  1916,  all  were  Japanese;  of  the  8,699^ wage  employees 
5, ,3*5 9  were  Japanese,  3,328  were  Koreans,  and  12  were  Chinese.  It  is 
iisual,  however,  for  the  Japanese  to  fill  the  more  or  less  skilled  occupa- 
tioiis  and  to  depend  on  the  Koreans  to  do  the  labor.  As  illustrating 
ti'i-,  it  may  be  stated  that  aU  of  the  administrative,  technical,  and 
'Migineering  employees  of  the  Ryuzan  workshops  are  Japanese,  but 
al>uut  70  per  cent 'of  the  artizans  and  laborers  ai'e  Koreans.  In  the 
railway  shops  the  Koreans  make  very  good  workers,  especially 
in  foundry  moulding,  brass  work,  and  wood  work ;  they  do  very  well, 
also,  on  machine  tools  and  erecting  work.    The  writer  was  told  by 


experienced  mining  engineers  that  the  Koreans  make  excellent  rock 
workers,  and  they  anpear  to  make  good  grade  and  track  workers. 
iNo  attenipt  was  made  to  gather  wage  data,  except  as  affecting  the 
radway  situation. 

RAILWAY  SITUATION. 

With  the  exception  that  the  gauge  of  the  trunk  line  and  principal 
branch  railways  is  all  4  feet  8f  inches  instead  of  3  feet  6  inches,  the 
railway  situation  m  Korea  is  similar  to  that  in  Japan.  The  railways 
can  be  classified  as  Government  railways,  including  all  the  trunk 
lines  and  important  branches,  and  the  privately  owned  light  railways 
and  tramways.  These  latter  might  be  subdivided  into  (1)  commer- 
cial  and  (2)  industrial  light  railways  and  tramways,  there  being  a 
considerable  and  growing  mileage  of  the  industrial  class. 

On  March  31,  1916,  there  were  1,006.5  miles  of  Korean  Government 
radways  in  service  and  81.1  miles  under  actual  construction,  with  a 
very  considerable  mileage  projected.  There  were  111.8  miles  of 
light  railways  and  tramways  in  service  and  165.4  miles  under  con- 
struction, and  in  this  case  also  a  good  deal  of  additional  mileage  was 
projected.  In  addition,  there  are  two  short-line  railways  in  north- 
eastern Chosen  under  the  supervision  of  the  Japanese  mihtary  author- 
ities. One  of  these  runs  from  the  port  of  Seikoshin  to  Kanko,  where 
It  will  connect  with  the  Kankyo  fine  when  the  latter  is  completed, 
Ihe  other  hue  is  from  the  port  of  Seishin,  the  northern  terminus  of  the 
proposed  Kankvo  Hne,  to  Kwainei  on  the  Tumen  River;  this  line  will 
become  part  of  the  Seishin-Kirin  line  when  that  is  completed  (see 

p,   1  iu). 


106229"— 10- 


12 


ill 


CHOSEJT. 


179 


m.  KOIMN  GOTEENMENT  RAILWAYS. 

HfTlODUCTION. 

On  July  31,  1917,  the  admioistration  of  the  Korean  Government 
Kailways  was  oomoidated  'with  that  of  the  South  Manchuria  Rail- 
way to.,  and  this  pouit  will  be  referred  to  later  in  connection  with 

the  latter  company.  One  of  the  reasons  for  this  consohdation 
eiidouhtedly  was.  to  give  the  Korean  raiways  the  benefit  of  opera- 
tion with  the  South  Manchuria  Railway  under  a  company  organiza- 
tion  and  to  obtain  the  advantages  of  a  company  profit-and-loss 
account,  m  addition  to  the  general  benefits  to  be  derived  from 
consohdatmg  the  radwaya  under  one  centralized  efficient  manao-e- 
ment.  -  ^ 

As  the  available  data  are  entirely  for  the  periods  previous  to  this 
consohdation,  the  following  discussion  will  refer  only  to  the  Korean 

Cjiovemment  Radways. 

ETTENT  OF  'LINES. 

The  main  line  runs  from  Fusan^  to"  •Seoul  (Koijyo)  to  Antun^  a 
total  of  &85.6  miles,  forming  what  might  be  caUed  the  Korean  part 

of  the  Timns-Siberian  route  to  Japan.  In  addition,  there  are  the 
foilowuig  important  branches:  The  Konan  hue  runnino'  in  a  south- 
westerly direction  from  Taidcn  to  Moppo,  161.3  miles;'  the  Kei^Gen 

line  running  northeast  from  Seoul  to  Gensan  and  Bunsen,  138,4  miles- 
the  Hei-Nan  branch  from  Pingyang  (Heijyo)  to  the  port  of  Chin- 
nampo,  34..3  ....mdes;  the  Masan  branch  'from  Sanroshin  to  the 
important  naval  base  of  Masan,  24.8  miles;  and  the  Kei-Jin  branch 

from  Seoul  to  the  important  commercial  port  of  Chemulpo  (Jinsen) 
where,  because  of  the  fact  that  the  tides  rise  about  32  feet   there  is 
now  being  constructed  a  locked  basin  for  the  handling  of  vessels 
taken  into  the  basm  near  Iiigli  tide.    There  are  a  number  of  otlier 

unimportant  short  branches. 

HISTORICAL  SUBTEl. 

Folowing  is  a.  brief  history,  largely  taken  from  the  historical 

sketches  given  in  the  annual  r«>ort  for  the  vear  ended  March  31 
HI16,  by  the  railway  bureau  of  the  Governor  General  of  Chosen' 
The  radway  hnes  had  their  origin  in  a  concession  to  build  and  main- 
tain a  radway  between  ■Seoul  and  Chemulpo  granted  to  James  R 
Moree,  an  American  citizen,  by  the  Korean  Government  in  1896* 
W  hile  the  construction  was.  stiM  in  progress  a  syndicate  headed  by 
Baron   1.  Shibusawa  bought  the  concession  and  the  rights  con- 
nected with  it  in  May,  1897.  and  continued  the  work.     In  May 
1899,  the  syndicate  was  transformed  into  tlie  Seoul-Chemulpo  Rail- 
way Cb.  and  the  line  between  Chemulpo  (Jinsen)  and  Roryoshin 
m  mdes  in  length,  was  opened  for  traffic  in  September  of  that  year' 
The  rem,aining  part,  about  5  miles,  w.as  completed  and  opened  iii 
JwJy.  l^'OO;  this  IS  now  known  as  the  Kei-Jin  branch. 

1  he  construction  of  the  line  between  Seoul  and  Fusan  was  taken 
up  ill  August,  1901,  by  the  Seoul-Fusan  Railway  Co.  under  the 
17S' 


terras  of  a  treaty  signed  between  Japan  and  Korea  in  August,  1894, 
as  weM  as  a  contract  entered  into  between  the  Korean  Government 
and  the  above-named  company  in  September,  1898.  This  line  of 
about  267  miles  was  finishea  and  opened  for  traffic  in  January,  1905, 
and  the  same  company  purchased  the  Kei-Jin  hnoin  October,  1903. 

The  construction  of  tne  hne  from  Seoul  to  Shingishu,  known  as 
the  Kei-Gi  section,  was  taken  up  by  the  temporary  railway  depart- 
ment of  the  Japanese  Army  in  February,  1904,  but  commercial 
traffic  was  not  handled  until  April,  1908. 

When  the  nationalization  of  the  railways  in  Japan  was  decided 
upon  in  1906,  the  Imperial  Government  of  Japan  first  purchased  all 
of  the  Kei-Fu  and  Kei-Jin  lines,  totaling  296.6  miles;  the  railway 
bureau  of  the  Residency  General  of  Chosen  was  established  at  the 
same  time.  In  September  of  the  same  year  the  Kei-Gi  line  of  332.9 
miles  and  the  Masan  branch  of  25  miles  were  transferred  to  the 
railway  bureau.  In  December,  1909,  the  jurisdiction  of  the  Korean 
railways  was  taken  over  by  the  Imperial  Government  Railways  of 
Japan,  but  in  October,  1910,  they  were  transferred  back  to  the 
railway  bureau  of  the  Government  General  of  Korea,  this  arrange- 
ment being  continued  untU  July  31,  1917,  when  they  were  consoli- 
dated with  the  South  Manchuna  Railway. 

The  construction  of  the  railways  in  Chosen,  particularly  the  sec- 
tion between  Seoul  and  Shingishu,  was  carried  out  very  nurriedly, 
the  object  at  the  time  being  to  connect  the  extreme  south  of  the 
country  and  the  extreme  north  as  quickly  as  possible,  and  to  connect 
a  few  of  the  important  seaports  with  the  trunk  hnes  by  means  of 
branches.  Within  a  few  years  of  completion,  however,  the  recon- 
struction of  the  line^was  taken  up  and  fmished  in  due  course  of  time. 
With  the  completion  of  £he  railway  bridge  over  the  Yalu  River  and 
the  reconstruction  of  the  Antung-Mukden  branch  of  the  South 
Manchuria  Railway,  the  Korean  railways  became  a  link  in  the  line 
of  communication  between  Europe  and  Japan  by  way  of  the  South 
Manchuria  and  Trans-Siberian  hnes. 

The  Masan  branch  was  built  by  the  military  authorities  in  1904 
and  1905.  Since  1906  the  Kei-Gen  branch,  from  Seoul  to  Gensan 
and  Bunsen,  and  the  Konan  and  Hei-Nan  branches,  totaling  about 
350  miles,  have  been  completed  and  opened  for  traffic  for  the  devel- 
opment of  the  country. 

There  is  one  very  pertinent  fact  to  be  borne  in  mind,  namely,  that 
in  the  building  of  railways  in  Siberia,  Manchuria,  and  Chosen  "by  the 
Japanese  and  Russians  strategic  and  political  factors  were  given 
first  consideration  and  commercial  utihty  was  considered  later. 
In  most  cases,  in  this  territory,  strategic  and  commercial  utility  seem 
almost  to  coincide. 

In  addition  to  their  strategic  purpose,  the  investigator  perceives 
that  the  Korean  Railway  and  the  Antung  branch  of  the  South 
Manchuria  RaUway  possess  a  function  of  equal  or  possibly  greater 
importance  in  tapping  a  granary  for  Japan,  to  which  country  these 
lines  provide  a  direct  route  through  Chosen  and  across  the  Fusan 
Straits  to  Siiimonoseki. 

EXTENSION  UNDER  WAY. 

The  principal  extension  contemplated  (work  on  some  part  of 
which  is  now  actually  under  way)  is  the  completion  of  the  Kankyo 
line  from  Gensan  to  tne  port  of  Seishin,  a  distance  of  about  360  mdes, 


II 


180  MILWAY  MATBKIALS,  EQUIPMENT,  AlfD  SUPPLIES. 

ll!?;f  ii?l  "Jw?'  T"  ~rP^^^«^  '^  l^J'5  and,  something  over  20 
mdes  m  1916.  This  hiie  will  coniiect  pear  Seishin  with  the  Seishin- 
Kwainei  liiie,/whiiA  is  plaEned  to  link  'upwith  a  line  to  Kirio, 
Maiiehma^e  p.  208X  where  connections  in  turn  will  be  made  witll 
tile  Jiinn^^hangchun  hne;  at  Changchun  connections  wiU  be  made 
iwtti,  Ae  piwenlnortbmi  tenninns  of  the  South  Manchuria  Kailway 
and  the  roiiihern  end  of  the  Harbin^hangchnn  branch  of  the  Chinese 
.Jti^astem  Kailway. 

CONSTllJCTION' 


•--CAIWALIZATION-PliroiM^^  STATISTICS. 

The  table  Mow  shows  the  perfomance  statistics  of  the  Korean 
lioyerninent  Railways  Jor  the  years  ended  March  31,  1907,  1914. 
and  1916.  The  statistics  obtainable  do  not  afford  sufficient  data  t<J 
ctetermine  the  construction  costs,  but  the  annual  report  for  1915 « 
shows  the  valuation  of  the  Kei^Fu  Railway  Co.,  amount  defrayed 
from  nnii^^^^  and  cost  of  construction  and  improvement^  as 

toialmg  $66,264,368,  equaling  $65,835  per  mile  of  fine,  which  is 
probably  a  rather  close  approximation  of  the  actual  cost  of  con- 
struction. 

Tlie  total  capital  invested  is  shown  as  $69,301,761,  brineinff  the 
Item  up  to  $68,854  per  mile  of  line.    This  total  includes  $349,950 

stores  fund.  •  w      ,uum 

The  performance  statistics  follow: 


Items. 


MiieS'  Of  111  tmeits. , 

wrngBtmliciiilinf©  torjmr 

Cipital  tevestisil , . . . , 

ttpiial  In¥««itiKl  pur  mile  or  lime , 

'Total  workjnfc  n  wniies .... 

Jotil  working  expoiws . . 

Opwitliiif  .ratio. , .' .  .*.*.'.*.'  .**.'.*.".'*' 

PimntiisB  of  proit  on,  mpital  litvusied,  1 '. '. '.  1  *. 

Ymatif  wotktaf  wnwnot  pw  .mllo  of  line ......... 

▼••fly  wMfMog'  expuMs  per  'mite  of  Hm. 

OpuniilafiiicoiiKipermlleofliiie 

5tii«iiBrteiiiiiilI«gpriiii..,,...,, , 

:Cl«>irlnita,mll«iie;rijii.. :...: 

Ml:wltr»in,iMleag®mii..... , 

To'tal,  twill.  ,iBllB«i»  run • 

KtimberofpMMnpfai'eiiRled 

Number  of  pMMUferB  curried.  1  .mile ] 

C«MliJ.ng'«iiniiiiip 

farnliip  per  'passingir  airried.  1  mile '.*.'.'." 

A.w:r:a«B  ride  per  .pMBwipr 

Ntimbar  of  tons  (of  2.000  poimds)  of  eoods  curried. 

.Niim.ber  of  tons  of  goods  carried  1  mile 

goods  etmiiigs. ...... ■. ; 

Earnings  per  ton  of  goods  carried  1  mile.-.. , . . . 

ATerage  haul  per  ton  o.f  goods. 

Average  tonnage 'per  trafii 

.Number  of  looooMitfves 

NiimtwT  of  rarrlages 

Mumber  of  freight  cars, *." 


g|  j||y|mi      J||K 


....percwat... 


mi.  8 

I,,  307,877 


Wmmgt  mmm 

'tl;Tii4«S' 
III*. '3 

-mm 


1913-14 


..miles. 


l,7«7 

)|i'Cllnl 

■ISi 


.miles. 


§46^11.0 
(*) 

1. '725,517 

%m§,TT2 

■98,882, 574 

tl,056.(»4 

to.  0100 

37.6 

438.,  116 

27, 783, 195 

1542,810 

10.0106 

03.3 


970.2 

oiL"i' 

102,258 

18,914,315 

13,132,5.^ 

•781,761 

80.0 
1*25 

t4.28d 

13,439 

1846 

1,014,585 
1,955,781 
(6) 

3,570,366 

4,995.441 

173,743,488 

11,902,903 

to.  0100 
34.8 

138,238,994 

•1,263,240 

•0.0095 

88.9 
70.7 

165 

335 
1,602 


1915-16 


1,006b.  5 
1,255.5 
1,002.S 

•80,301,761 

•68,854 

•4,453,813 
•8.567,199 

•886.614 

m.  1 

1.28 

S4,4.')3 
13.559 

•894 

1,580,168 

8,544,297 

5,040,471 

186.998,752 

•1,974.854 

SO.  0095 

37.1 

201, 538,  iW 

•1,078,066 

•0.0087 

108.6 

102.6 

IflO 

JI9T 

1,«M 


CHOSEK. 


ORGANIZATION  AND  OPERATING  METHODS. 


Xol 


The  organization  is  of  the  typical  branch  or  bureau  type,  being 
very  similar  to  that  of  the  Shantung  Railway  (see  p.  130);  but  since 
the  Korean  railways  are  now  a  section  of  the  South  Manchuria  Rail- 
way this  situation  will  b©  referred  to  later  in  connection  with  the 
latter  system. 

The  method  of  train  operation  is  the  typical  station-master  work- 
ing, with  very  little  signaling  and  interlocking,  all  of  which  conforms, 
in  general,  to  the  practice  on  the  Japanese  railways. 

TRAFFIC  AND  RATES. 

For  the  year  1907  the  passenser  earnings  were  practically  double 
the  freight  earnings.  During  the  interval  since  that  time  freight 
earnings  have  been  growing  at  a  faster  rate,  until  in  the  year  1915 
the  freight  earnings  were  practically  equal  to  the  passenger  earnings. 
It  is  the  general  rule,  with  all  railways  in  this  part  of  the  world,  for 
the  passenger  earnings  to  exceed  the  freight  business  at  first  but  for 
the  freight  business  to  grow  faster  and  fiially  exceed  the  passenger 
business.  This  rule,  how^ever,  does  not  apply  to  the  South  Manchuria 
Railway,  where  the  freight  earnings  have  always  been  largely  in 
excess  of  the  passenger  earnings. 

For  the  year  1907,  with  641.5  miles  of  line,  2,625,772  passengers 
were  carried.  This  number  was  not  equaled  again  until  the  year 
1912,  when  there  was  an  increase  to  4,399,022,  with  837  miles  of 
hue.  On  local  passenger  trains  second  and  third  class  passengers 
are  handled,  and  on  express  trains  first-class  passengers  are  handled 
in  addition.  The  available  data  do  not  show  the  details  of  the 
amount  of  travel  or  the  earnings  of  these  several  classes.  The 
average  distance  traveled  per  passenger  has  been  a  little  less  than  40 
miles  since  1906.  The  average  passenger  earnings  per  passenger 
mile  for  1915  were  0.095  cent,  which  is  just  slightly  less  than  the 
average  for  1906.  In  1907  the  earnings  increased  to  1.22  cents 
per  passenger  mile;  since  then  they  have  gradually  fallen  and  were 
0.097  cent  m  1914  and  as  given  above  in  1915.  The  goods  earnings 
increased  about  210  per  cent,  with  less  than  50  per  cent  increase  of 
mileage,  between  the  years  1907  and  1915,  inclusive.  The  tonnage 
per  train  had  increased  to  102.6,  or  more  than  200  per  cent,  during  this 
interval,  but  it  still  is  very  low  considering  the  light  grades  (seldom 
exceeding  1  per  cent)  and  the  heavy  motive  power  and  freight 
equipment  on  these  lines. 

Coal  constitutes  the  largest  item  of  tonnage,  amounting  to  about 
335,000  tons,  or  approximately  20  per  cent  of  the  total  freight 
handled,  for  the  year  1915.  A  considerable  portion  of  this  comes 
from  the  South  Manchuria  Railway.  Rice  forms  the  next  largest 
item  and  has  increased  from  63,000  tons  in  1907  to  296,000  tons  in 
1915,  or  about  400  per  cent.  Lumber  amounting  to  about  107,500 
tons  in  1915  is  the  next  largest  item,  showing  an  increase  of  more 
than  150  per  cent  from  1907.  Beans  were  the  fourth  largest  item  in 
1907;  the  tonnage  handled  was  about  31,500  tons,  and  in  1915  it 
was  about  88,500  tons — an  increase  of  nearly  190  per  cent,  50  per 
cent  of  which,  however,  occurred  in  1915.  The  other  freight  handled 
IS  all  of  a  very  miscellaneous  character.     The  mineral  traffic,  except 


I 


182 


B.AILWAY  MATERIALS,  BQITIPMENT,  AND  SUPPLIES. 


tliat  in  grapliito  (8,250  tons),  for  the  year  1915  amountod  to  only 

about  4,200  tons. 

lAMUNGS,  llWWilS,  ANB  PROFITS. 

Tlie  performance  table  on  page  180  shows  that  the  operating  ratio 
has  been  reduced  from  102.2  per  cent  in  1906  to  80.1  per  cent  in 
1916,  which  latter  year  showed  a  profit  of  1.28  per  cent  on  the  capital 
inTested.  The  change  has  resnlted  from  a  steady  growth  of  traffic, 
with  close  attention  to  operating  efficiency,  including  iraprovements 
for  increasing  the  trainload.  With  the  increase  of  coal  mining,  the 
traffic  that  will  result  from  the  iron  furnaces,  and  the  general  develop- 
ment of  the  other  resources  of  Korea,  there  is  little  doubt  that  these 
lines  will  become  increasingly  profitable. 

lMPLO¥118  AND  WAGES. 

The  following  table  shows  the  number,  nationality,  and  averat^e 

compensation  of  the  employees  of  the  Korean  railways  as  of  March  31, 


Bcpnrtment  and  na- 
tijoality    of   em- 

ptoyee. 


Direct  or    (engineer 
in  chief}: 
JaiMinose    (''''Cho- 
iunin"nuik).... 

0'«npral  department : 
Councilors;,  Japan- 
ese   ., 

Other  Japanese 

Koraans 


O'fficials  of 
*'Sonin"rank. 


NttBl' 

ber. 


Ax-'eRijfe 
monthly 

pay. 


l7!I 


Employees  of 

"nainin"rank. 


Num- 
ber. 


A  em- 
ptoyees. 


Average  „        !  Average 

montlily  j*l^'      monthly 

pay.     j        '        pay. 


Class  B  em- 
ployees. 


Num- 
ber. 


Total , 

Traffic  (icpartnaent: 
Councilow,  Japan- 
ese  

Other  Japttnese 

.Kore-Ans. 


93.13 
78.51 


Average 

monthly 

pay." 


Total. 


Avern 
monthly 
pay. 


Nam-'  -^^'■'^'ii* 

ber. 


I3»).79 


Zi 


23 


139.33 


69 
1 


m.92 


S14.73 
18.94 


»7 
9 


7d 


2 


llii 


lf»5.75 
81.99' 


— 


Total 10  1... 


151 


35.  lii 


8.36 


2 

LSI 


774 
19 


H.20  !    975 
11.92  I    179 


8.89 
7.20 


193 


17.10 


2  i 
l,90>i 

498 


151 


Locomotive  depart- 
ment : 

Engineer   (''Cho- 
kunin"ranlc).... 
Other  Japanese.... 

Koreans I { 

Chinese ! 


'»  L... ;1,454  I ,..2,,40H  ; 


215.19 
133.77 


77 


3ii.  '05 


Total 


12.30 


411 
11 


14.24 
10.25 


431 

7 


11.13 

6. 66 
9.85 


1 

1,021    

442  [ 

7  ' . ., 


If  aintenanoe  of  way 
and  works  de- 
partment: 

Japanese. 19  I     108.21 

Kore:m,s I ' , 

Chinese f ■ 


n 


422 


9u8 


tl,471 


i-i.i: 


80 


41.14 


Total.. 


19 


80 


Jbi  J* 

6 


17.91 

IJ.  oO 


1,1(0 

1,4« 


12.41    1,X?1    

«i.82  jl,472  ' 

8.17  5 


278 .12,631 


3,008 


11-57 


CHOSEK. 


183 


Peitrjl  ment  and  na- 

Officials  of 
"Sonin"rank. 

Employees  of 
"nainin"rank. 

Class  A  em- 
ployees. 

Class  B  em- 
ployees. 

— , —  "": — =a 

Total- 

tljimlity    of   em- 
ployee. 

Num- 
ber. 

Average 

monthly 

pay. 

Num- 
ber. 

Average 

monthly 

pay. 

Num- 
ber. 

Average 
monthly 

pay. 

Num- 
ber. 

Average 

monthly 

pay. 

Num- 
ber. 

A  vera:;  e 
monthly 

pay.  " 

Financial     depart- 
ment: 
Councilor,  Japan- 
ese   

1 
3 

f  145. 29 
108.57 

"■"57" 

"'m.il' 

22 

""'ji6.*96" 

8.77 

1 
224 

22 

Japane.se 

Koreans 

137.22 

101 

Total 

4 

57 

101 

85 

247 

$22. 67 

Construction  depart- 
ment; 
Engineer    ("Cho- 
kunin"rank)... 

1 

1 
3 

233.26 

157.03 
112.44 

1 

1 
19 

1 

Councilor.  Japan- 
ese  

Other  Japane^se 

9 

42.04 

4 
1 

14.40 
17.45 

3 

7.2;i 

--•--•--•• 

Koreans 

••-•--■••• 

Total 

5 

9 

5 

3 

22 

54.54 

Ryuzan  workshops: 

Japanese 

2 

127.95 

13 

37.85 

32 

20.22 

369 
620 

16. 26 
7.85 

416 
620 

Koreans 

-••••-       -       -!•• 

Total 

2 

13 

32 

989 

1,036 

11.83 

Taiden  construction 
oflice: 

Assistant  secre- 
tary, Japanese.. 

Assistant  e  n  g  i  - 
ncers,  Japanasc.. 

1 

157.03 

9 

8 

37.00 
37. 64 

*** 

1 

9 

8 
62 
17 

Clerks,  Japanese. . 



Other  Japanese 

18 
1 

is.  30         44 
15.95         16  i 

13. 69 
6.86 

•••---•-•• 

Koreans 

Tom 

1 

17 

19 

60 

97 

19.15 

SUMMARY. 

Officials    of    "Cho- 
kunin"rank 

3 

6 

6 

8 

1 
33 

246.  20 
136.  tj7 

111.46 

78.41 
S7. 24 

3 
6 

6 

8 

1 

33 

187 

287 

1, 359 

J,  328 

12 

Counci  lors ,  Ja  pan  ese 

Secretaries,    Japan- 
ese  

Assistant  secre- 
taries, Japanese... 

..........1 

Secretary   interpre- 
ter, Japanese 

Engineers,  Japanese. 

125.1,8 

I 

i 

1 

1 

*■"*"! 

Assistant  engineers, 
Japanese.. 

Clerks.  Japanese 

Other  Japanese  em- 
plDyees 

Korean  employees . . 

Chinese  employees. . 

187 
287 

39.46    

36.24  ! 

1,755 

41 

1 

15.26  3.604 

12.26  3,2S7 

12 

11.93  |. 
7.14  : 
8.31 

■•-----••HP 

Total 

57 

119.13  !     474 

i 

37.51   1,796 

li.18  6,903 

1 
9.79   9,230 

12.93 

From  the  above  table  it  will  be  seen  that  the  average  monthly 
wage  for  all  employees  is  S12.93  gold,  wliich  is  S3.18  gold  higher 
than  the  average  wage  for  all  employees  of  the  Imperial  Government 
Railways  of  Japan  for  the  same  year.  The  Ryuzan  workshops  and 
the  Taiden  construction  office  are  given  as  typical  situations.  The 
summary  includes  the  other  construction  organizations  and  the  other 
workshops— one  of  the  latter  at  Soryo  (near  Fusan)  and  one  at 
Heijyo  (Pingyang),  having  377  and  177  employees,  respectively. 
Since  the  date  of  the  above  figures  there  has  been  some  increase  in 
the  percentage  of  both  the  Koreans. and  the  Chinese  employed. 


lAItWAY  MATERIALS,  EQUIPMENT,  AHD  SUPPLIES. 

BOADWAT  AND  TKACX. 

^  The  ,Kel-Gi  line  from,  Ryuzan,  near  Seoul,  to  Sliiiiffishu  wm  hur^ 

tat  the  Ime  has  smce  been  substantially  recoiistnic ted   with  mixi 
mum  grades  of  1  per  cent  and  maximum  curves  of  4°  30'Vnd  wiXril 
structures  permanent.    Wliile  the  Kei-Fii  Wim^^  orL!!!ii  ^,  *lf  ^ 
located  an/constmcted,  i 

m  accordance  with  the  standards  just  Indicated,  aS^^^TS 
Z^nZZiZt^'^^  ^r*'  ^^  this^constmctiont^  iZ 

ml  w  l^t!^^^^^^         ^^^  ^''^''  ""^f  ^**^«^  ?^^^^^  ^^  P*>int«  wJiwe  flood 

m  atar  dunng  the  rainy  season  damaged  the  roadway.     In  the  oast 

Sr  ""  *"  ^""^  ^''''^  ""^  '**'™*'«*''  ^*^*^^  delaying^ 

^   The  oth®r  lines  have  been  built  largely  on  the  final  location  but  it 
IS  the  general  practice  to  put  in  temporary  structures  and  after  the 

liM  IS  m  service  to  put  m  the  permanent  stractures  and  to  lift  the 

mentTonS    '""'^^  overcome   the   washing^jut    tendency   just 

The  location  of  all  lines  is  through  fairly  roueh  countrv  for  railwfiir 
construction,  and  tWs  fact,  with  the  stendara'"of  cons  true  titTnfo^ 
lowed,,  has  m,ade  the  hnes^  moderately  expensive.  A  very  consider- 
itirrZf  llTf'"'^  *'*?  been  required,  particularly  on  the  main 

reouirod  a  great  deal  of  tunneling  and  heavy  rock  work. 

About  235  mi  es  of  track  is  laid  with  65-pound  rail,  and  all  the 
Pemainder  is  laid  with  75.pound  rail.  The  general  details  of  Lck 
work  conform  very  closely  to  the  practice  of  the  Imperial  Govern- 
ment Railways  of  Japan.  Parts  of  the  line  are  ballasted  with  broken 
^ne,  and  the  remaining  parts  with  good  gravel,  some  of  which  has 
been  screened.  The  ties  are  an  assortment  of  Japanese  hardwoods 
•lapaaese  o^aks,  and  tnnbers  from  northwestern  Cho,sen.  ' 

i«0€oiifcrri?Es* 

Of  the  165  locomotives  constituting  the  equipment  March  31  1916 
94  were  of  the  tank  and  71  of  the  tender  type;  of  thrktter  9  were 
superheatera,  .A  very  large  percentage  of  these  locomotives  are  of 
Amencan  manufacture,  although  a  number  of  the  latest  and  lare^Psf 
mrere  built  at  the  Shakako  works  of  the  South  Manchuria  Rai W 
at  l>airen.  These  locomotives  are  of  the  4~6~^  type,  and  weiffh 
^'^S^Plo^f  Zl*^  tender,  in  working  condition,  about  240,000  pounds 
with  120,000-pound  drivers.  The  cyMndere  are  21  by  26  inches  the 
diameter  of  the  driving  wheels  is  54  inches,  the  boiler  pressure  is  180 

l?ITl!'  ^  1    *^®  ^""^'"^  ""^  ?^  superheater  type.    The  South 
MancHuna  Kailway  now  has  an  order  in  America  for  24  locomotives 
a  number  of  which  are  probably  for  the  use  of  the  Korean  Railways! 

.PASSIMCSEE  CAIS. 

The  carriage  equipment  consists  of  first,  second,  and  third  class  day 
coaches,  as  well  as  sleepmg,  diniiM,  mail,  and  baggage  cars,  for  the 
handling  of  both  the  through  and  the  local  busmess.    The  largest 
Item  of  the  equipment  consists  of  134  third-class  care,  with  four-  i 
wneel  tracks,  which  seat  100  passengers  per  car.    The  next  largest  • 


CHOSEIT. 


185 


items  are  47  second  and  third  class  cars,  each  seating  86  passengere, 
and  47  baggage  and  brake  composite  cars.  A  very  large  percentage 
of  this  equipment  is  also  of  American  manufacture,  but  the  tendency 
in  recent  years  has  been  to  manufacture  this  class  of  equipment  in 
the  Ryuzan  shops  or  to  obtain  it  from  the  Shakako  works  at  Dairen. 

FREIGHT  CAKS. 

The  freight  equipment  is  divided  between  open  and  covered  cars, 
of  which  557  are  of  the  covered  or  box  car  type;  378  of  these  are  of 
t^Ypical  American  construction  with  air  brakes,  46  are  goods  vans 
with  air  brakes,  and  24  are  cattle  cars  with  air  brakes.  Of  the  re- 
mainder of  the  freight  equipment  only  about  10  per  cent  is  equipped 
with  hand  brakes. 

With  the  exception  of  four  water-tank  cars  the  remainder  of  the 
freight  equipment  consists  of  open  care,  of  which  78  are  coal  cars, 
608  miscellaneous  gondolas,  and  342  small  four-wheel  wagons,  which 
have  been  mostly  used  for  construction  work. 

There  is  very  little  special  work  equipment.  In  the  past  work 
equipment  has  been  little  used,  hand  labor  being  depended  upon,  but 
with  the  growth  of  business  it  would  appear  that  special  work  equip- 
ment, particularly  wrecking  cranes,  will  become  more  necessary  in 
the  future. 

From  the  above  it  will  be  noticed  that  there  were  0.194  locomotn  <  s 
and  0.336  passenger  cars  of  all  classes  and  only  1,60  freight  cars,  nc  idl- 
ing work  equipment,  per  mile  of  line  on  the  Korean  Railways  March 
31,1916.  Tlieref ore  the  statement  seems  warranted  that  the  growth  of 
business  to  be  expected  in  the  next  few  years  will  inevitably  require 
additional  rolling  stock.  It  is  not  probable  that  the  existing  condi- 
tion will  be  in  any  measure  relieved  by  the  consolidation  of  the  man- 
agement with  that  of  the  South  Manchuria  Railway,  which  has  no 
surplus  equipment  to  take  care  of  its  steadily  growing  business. 

WORESHOPS. 

The  main  shops  of  the  Korean  Railways  are  located  at  Ryuzan,  in 
close  proximity  to  the  general  administration  buildings,  less  than  5 
miles  from  Seoul.  There  are  also  division  workshops  at  Soryo,  about 
5  miles  from  Fusan,  employing  ordinarily  from  375  to  400  men,  and 
at  Heijyo  (Pingyang),  employing  from  175  to  200  men.  The  require- 
ments at  Antung  are  taken  care  of  in  the  South  Manchuria  district 
shojis  at  that  point. 

The  Ryuzan  works  are  well  arranged  and  fairly  well  equipped  with 
modern  shop  machinery^  a  large  amount  of  which  is  from  American 
sources.  The  number  of  men  employed  varies  from  1,000  to  1,200, 
the  usual  number  being  about  1,100.  In  recent  vears  an  increasing 
number  of  Koreans  have  been  employed  as  artfsans  and  laborers'' 
When  the  writer  visited  the  works  in  July,  1917,  slightly  more  than 
70  per  cent  of  the  1,100  employees  were  Koreans  or  Chinese— a  con- 
s  tlerable  increase,  it  will  be  noted,  over  the  number  shown  by  the 
table  on  page  183  for  March  31,  1916. 

These  shops  are  arranged  to  take  care  of  all  classes  of  repairs  on 
the  roiling  stock  of  the  Korean  Railways,  besides  handling  a  very 
considerable  amount  of  manufacturing  of  railway  requirements  for 
all  departments.     In  addition,  at  the  Ryuzan  works  a  small  number 


J» 


:r 


I 


i 


186  EAILWAY  MATERIALS,  BQITIPMEXT,  AND  SUPPLIES. 

of  passenger  and  freiglit  cara  are  being  constructed,  the  necessary 
parts  benig  purchased  where  they  can  be  obtained  to  the  best  advan- 


OfFICIALS— PURCHASES. 

The  director}^  of  the  principal  officials  will  be  included  under  the 
Korean  section  of  the  South  Manchuria  Railway  Co.  (see  p.  272). 

In  the  early  dnjs  of  the  construction  of  the  Korean  Railways  a 
large  part  of  all  the  requirements  was  supplied  from  American  sources, 
and  a  substantial  part  is  still  being  so  purchased  when  the  articles  are 
thus  obtainable;  but  the  operation  of  the  Korean  Railways  has  been 
very  similar  to  that  of  the  Imperial  Government  Railways  of  Japan  and, 
so  far  as  is  practicable,  equipment  and  supplies  are  obtained  from 
Japanese  sources,  the  amount  increasing  from  year  to  year.  More- 
over, there  is  a  great  tendency  to  secure  supplies  from  America 
through  lar^e  Japanese  commercial  and  engineering  concerns,  such 
as  the  Mitsui  Bussan  Kaisha,  Takata  &  Co.,  Okura  &  Co.,  and  similar 
concerns,  all  of  which  have  well-staffed  branch  offices  in  Seoul.  The 
policy  It  IS  said,  is  to  allow  the  Stores  Branch  in  Seoul  to  purchase 
directlj  such  materials  as  can  be  obtained  through  the  local  repre- 
sentatives, but  large  general  purchases  will  ordinarily  be  handled 
through  the  general  purchasing  office  of  the  South  Manchuria  Railway 


ni.  KOREAN  LIGHT  RAILWAYS  AND  TRAMWAYS. 

INTRODUCTION. 

The  Korean  light  railways  and  tramways  are  of  considerable  im- 
portance.  The  following  is  a  reference  made  to  the  subject  in  the  an- 
nual report  of  the  railwav  bureau  of  the  Governor  General  of  Chosen 
for  the  year  ended  Marcn  31,  1916: 

The  light  railways  and  tramways  sanctioned  and  constructed  dnring  the  old  Korean 
administration  were  transferred  to  the  superintendence  of  the  Government  General 
of  Chosen  in  October,  1910;  the  lines  open  to  traffic  at  the  time  reached  only  20  miles, 
while  a  length  of  15  miles  was  still  unopened.  Before  that  time  there  w^as  no  law 
applying  to  these  lines,  so  one  was  then  issued  concerning  light  railways  in  Chosen 
ana  supplementary  laws  were  issued  in  June,  1913.  Since  the  fiscal  year  1914  an 
annual  sul)sidy  of  6  per  cent  has  been  allowed  to  companies  planning  to  lay  down 
and  work  light  railways  according  to  the  law,  so  as  to  assist  and  encourage  the  devel- 
opment of  the  work. 

The  policy  and  tendency  seem  to  incline  decidedly  toward  the 
buil.iing  of  trunk  and  important  branch  lines  as  part  of  the  govern- 
ment  system  of  standard-gauge  railways  and  the  building  of  light 
railways  or  tramw^ays  as  a  means  of  developing  the  country.  Tliis 
latter  class  includes  tramwa3^s  in  the  cities  and  industrial  lines,  par- 
ticularly in  the  development  of  the  mineral  resources  of  Chosen.  All 
these  lines  are  considered  as  forming  one  general  class,  but  they  can  be 
subdivided  into  the  lines  handling  general  traflic  (including  the  city 
passenger  tramways)  and  the  lines  that  do  not  handle  general  traffic. 
These  last  receive  no  subsidies  and  are  termed  private  lines.  On 
March  31,  1916,  there  were  64.9  miles  of  general-traffic  lines  of  all 
classes  and  46.9  mUes  of  industrial  lines,  making  a  total  of  111.8 
miles.  On  this  same  date  there  were  under  construction  144.4  miles 
of  the  former  and  21  mOes  of  the  latter,  a  total  of  165.4  miles.  In 
addition,  there  is  projected  a  very  considerable  mileage  of  both 
classes,  which  will  be  built  in  the  course  of  time. 

There  has  been  a  great  deal  of  difficulty  in  obtaining  the  necessary 
materials  for  constructing  these  lines  and  the  rolling  stock  to  operate 
them,  especially  since  the  exhaustion  of  the  supply  of  2-foot-6-inch- 
gauge  equipment  from  the  Antung  branch  of  the  South  Manchuria 
Kailway,  and  it  is  very  probable  that  the  construction  of  the  new 
lines  will  be  materially  retarded  until  prices  become  more  nearly 
normal. 

For  the  year  ended  March  31,  1916,  the  revenues  from  the  64  miles 
of  commercial  lines  amounted  to  $222,006  and  the  expenses  totaled 
$153,696,  leaving  a  profit  of  $68,310.  The  paid-up  capital  of  these 
lines  amounted  on  this  same  date  to  about  $3,537,000,  and  in  addition 
there  seemed  to  be  about  $1,242,500  of  other  debts,  making  the  out- 
standing capital  obligations  nearly  $4,800,000.  The  coiLstruction 
cost  and  prnxhasing  price  of  these  lines  on  the  same  date  totaled 
$4,202,275,  which  apparently  is  considered  the  equivalent  of  the 
construction  cost.     The  profits  for  the  year  1914  showed  only  about 

187 


188        :iail:wat  materials,  bquifmeht,  and  supplies. 

llL^^^T"*  ''^^''™  "^^  *^^*5.  ^*^^  ''''^  ^  1^15  about  1.6  per  cent 
aUowMg  for  some  mcrease  of  cap  tal  obligations  details  of  whLbT^ 
not  shown     It  is  not  Btated  on  what  lin^   CeZ^^^^^ 
guaranteed,  but,  w  th  the  partial  inforniatinii  «f  CnJ   #1!     «  -^ 

^n^,  which  would  indicate  the  payment  of  a  subsidy  of  4  to  5  ner 
cent  on  such  hnes  as  are  guaranteea.    This  apphes  to\oth  1914  w.^ 

Following  are  very  brief  references  to  some  of  the  hnes  on  which 
the  ivnter  obtained  Infonnation. 

KEIJYO  (SEOUL)  ELECTRIC  CO. 

in  Ch^osfS?™!?r  ^"^  •'''  I**^  '"f  *  important  concern  of  its  kind 
i^„-f  ;  **  operations  include  the  supplying  of  commercial  elec- 
tncity  and  gas  for  the  city  and  suburbs  of  .Seoul  (called  KeSrobv 

ianS  .-iiffr^A?!^,,'^  "^"^  purchased  and  takin  over  by 
Japanese  capit^     After  the  company  was  taken  over  it  was  firat 

Sasliso  Jfjf*  ^r*  ^'^r.-  S^*  P'^^°*  P"d-up  capital  ^ 
Slf$T;0(;S;S5o"'^"  ''^P"^  "^^^^'^-^  amounting^o  Tppioxi- 

wlSfk  '^f  l^fLff^  ?f  ''*"*^'  '"^'^  2^.6  miles  of  all  track,  aU  of 
wmch  IS  of  3-footr-8-mch  gauge.  DetaUs  of  the  earnings  were  not 
avaJable,  but  sufficient  data  were  obtained  to  inXatelhlt  whUe 

nof  f^nlfr'™  T'.^^l^'^  "'^y  **«  P'«fit«We  theZuiwayTl^e 
notcaroring  their  part  of  the  mterest  and  dividend  charges. 

mere  is  one  power  house  for  the  genera]  supply  of  current  wifh 

one  substation  ]n  addition  for  the  convereioTo?  tramX  00^^ 

LleSfer'Ss'cr^  f/'  "ir'^  P-«Beng«r  cri^mSS 

ana  t)  ta-aiier  goods  cars,  and  2  sprinklers.    Tliis  rolling  stock  ifir-lnH 

unde?  c«LZc^„^^i  i^""'  "^  •^."^y'  ^^^^'  ,*¥'«  ^^^e  6  new  cars 
?„,  Ik"  i?i  J    1  °  *?  *?^  company's  own  workshops,  the  equipment 

(o  buSmor'l''.±l'*^.  ^r'^  '^"'="'^1  f™""  America^'  It  wrSd 
to  buiid  more  cars,  but  these  were  held  up  on  account  of  the  difficultv 

"^ThlT^  ?q»fP?»??t  «°d  the  high  prices  prevailSL  "^*^ 

rhe  tract  is  all  laid  with  60-pound  T-raU     A  considerable  part  of 

WdSt-r'^  "   "'  '^'^"'^  manufacture,   incluSg^^ll 

I  ^rJ^Th.rHfil).'^  ^.  company  is  at  Tokyo,  Japan,  but  Mr. 
:»..,  f  TifP^*^^^  '^  *=^*^  en-meer,  located  in  Seoul,  and  has  eener  J 
charge  of  the  triunwayB,  incluSing  the  handling  of  pi^chaseTtlat  Ire 
made  locaUy.    Many  of  these  are  from  the  stroi^  Japan^e  commerd^ 

s?e'i=ra'ar'" '" '"'"'  "^  '^^"-^  *^  ^  eonixr^s 

ZENHOKU  UGOT  RAILWAY  CO. 

ZS^^  *^  «nshu,  where  thi  head  office  is  LcateT  The  m^^^^ 
SdolS^ir^r^^  B  1146,335,  with  about  125,000  ofo the? 
capital  oWigations.    General  commercial  traffic  is  handled.    The  Hne 


CHOSEN". 


189 


has  a  small  amount  of  equipment,  consisting  of  2  locomotives,  6 
passenger  cars,  and  12  coveied  and  9  open  goods  wagons. 

KOREAN  GAS  &  ELECTRIC  CO. 

The  Korean  Gas  Co.  now  has  12.8  miles  of  electric  tramway,  of 
2-foot-6-inch  gauge,  at  Fusan,  including  a  line  to  the  Torai'Hot 
Springs.  This  same  company  operates  the  commercial  electric  and 
gas  business  at  Fusan.  The  company  now  has  $675,000  in  capital 
shares  outstanding,  with  about  $200,000  of  other  capital  obligations. 

KANKO  COAL  MINING  CO. 

The  Kanko  Coal  Mining  Co.  operates  8.8  miles  of  st^am  line,  of 
2-foot  6-inch  gauge,  handlmg  general  commercial  traffic,  though  the 
principal  use  of  the  line  is  the  transporting  of  this  company's  coal  to 
the  nort  of  Seikoshin.  The  issued  share  capital  is  about  $150,000. 
The  nead  office  is  at  Kanko. 

KOREAN  LIGHT  RAILWAY  CO. 

The  Korean  Light  RaOway  Co.,  with  head  office  at  Fusan,  has  in 
course  of  constniction  four  or  five  steam  lines  amoimting  to  about 
115  miles  of  2-foot  6-inch  gauge.  These  lines  are  all  in  southern 
Chosen,  in  the  general  vicinity  of  FuSan,  and  about  25  miles  are  now 
practically  complete.  From  the  mformation  obtainable  it  appears 
that  this  a)mpany  has  additional  mileage  projected.  It  is  one  of  the 
concerns  whose  Imes  will  be  built  under  the  6  per  cent  subsidy. 

This  same  company  has  another  electrified  Ime  of  about  12  miles 
of  2-foot  6-inch  gauge,  under  construction  from  the  port  of  Seishin^ 
in  the  northern  part  of  Chosen,  to  Ranan,  on  the  Kyojo-Kwainei  mill- 
tary  railway.  From  all  appearances  this  concern  is  likely  to  take  a 
very  active  part  in  buildmg  subsidized  light  railways  and  tramwaya 
in  all  parts  of  Chosen. 

INDUSTRIAL  TRAMWAYS 

The  various  minmg  concerns  have,  as  a  rule,  built  and  operated 
the  industrial  tramways  for  the  handling  of  ores  and  fuel. 

The  Mitsui  Mining  Co.,  of  Tokyo,  owns  and  operates  the  longest 
lme--18.5  miles  of  steam  railway,  of  2-foot  6-inch  gauge,  between 
Shmanshu  and  Kaisen,  a  short  distance  north  of  Fingyang  (Heijyo). 

Mitsubishi  &  Co.,  of  Tokyo,  have  under  construction  two  steam 
lines,  one  of  10.3  miles  and  the  other  of  3.9  miles,  both  of  2-foot  6-mch 
gauge,  and  one  electric  line  of  6.8  miles,  of  2-foot  6-inch  gauge.  These 
are  aU  for  the  transportation  of  ore. 

M.  Komiya,  of  Fusan,  has  12.2  miles  of  man-power  line,  of  2-foot 
6-mch  gauge,  for  the  transportation  of  ore  between  Kokan  and 
Tokusuri,  and  there  are  a  number  of  other  small  Imes.  Mining 
development  wiU  probably  brmg  about  considerable  additions  to 
the  number  of  these  small  industrial  lines. 


1 


i 


Part  4.-^MANCHURIA. 

I.  GENERAL  INFORMATION. 

Most  of  the  features  of  Manchuria  involvmg  the  transportation 
situation  liave  been  covered  in  connection  with  the  general  features  of 
China.  It  therefore  seems  necessary  only  to  list  the  five  railways 
that  now  exist  and  to  call  very  brief  attention  to  the  products  of 
Manchuria  so  far  as  these  involve  railway  transportation.  In  con- 
nection with  these  railways  one  feature  that  will  probably  be  of  much 
importance  in  the  future  development  of  Manchuria,  and  has  in  the 
past  been  of  considerable  magnitude,  is  the  shipping  on  the  Amur  and 
its  tributaries,  of  which  the  Sungari  is  the  most  important.  The 
Amur  River  drains  an  area  of  many  thousand  square  miles  of  rich 
country  suited  to  both  agricultural  and  pastoral  products  and  prob- 
al)ly  containing  considerable  mineral  resources,  of  which  at  the  present 
time  gold  is  the  most  important  product. 

The  five  railways  in  Manchuria  are  as  follows:  South  Manchuria 
Railway  Co.,  692  miles;  Kirin-Chanojchun  Railway,  80  miles;  Ssup- 
ingkai-Chengchiatun  Railway,  52  miles;  Chinese  Eastern  Railway, 
1 ,078  miles ;  Tsitsihar  Light  Railway,  1 7  miles ;  tot al,  1 ,9 19  miles.  The 
first  three  lines  are  all  of  4-foot  8i-inch  gauge.  The  Chinese  Eastern 
is  of  Russian  standard  5-foot  gauge,  and  the  Tsitsihar  of  meter  gauge. 
The  second  and  third  lines,  although  nominally  Chinese  Government 
railways,  are  actually  feeder  lines  to  the  South  Manchuria  Railway 
and  are  largely  under  the  control  of  the  latter. 

The  soya  bean  is  produced  in  great  quantities  in  aU  of  southern  and 
central  Manchuria.  Millet  is  grown  in  its  several  varieties,  of  which 
kaoliang  is  the  most  important;  its  grain  is  used  for  food,  the  stalk 
is  stripped  for  fodder,  and  the  stalk  and  roots  are  used  for  fuel.  In 
central  and  northern  Manchuria  the  pastoral  products  are  important. 
Lumber  is  brought  down  the  Sungari  River  in  considerable  quan- 
tities, particularly  to  Kirin,  from  which  place  it  is  shipped  by  rail  to 
pohits  on  both  the  South  Manchuria  and  the  Chinese  Eastern  Rail- 
ways. 

Much  the  larger  part  of  the  population  of  Manchuria  is  located  in 
the  southern  and  central  portions.  It  is  estimated  that  about  75 
per  cent  is  located  in  the  general  region  served  by  the  South  Man- 
churia Railwaj.  This  territory  was  and  is  now  served  bv  the  native 
craft  on  the  Liao  River,  which  lies  west  of  the  main  line  of  the  railway 
from  a  point  about  75  miles  southwest  of  Changchun  (to  which  point 
it  flows  out  of  the  northeastern  part  of  Mongolia)  to  the  head  of 
the  Liaotung  Gulf.  In  the  past,  during  the  navigation  season  a 
great  amomit  of  traffic  was  carried  by  the  craft  plying  this  stream. 
This  business  was  carried  to  Newchwang,  where  it  was  taken  up  by 
ocean-gomg  ships.    One  of  the  handicaps  in  this  system  of  transporta- 

m 


192 


BAIL.WAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


the 


tiOE  IS  that  the  agricultural  products  can  best  be  transported  to  t 
nver  ports  dunng  the  winter,  but  the  river  and  the  port  of  Newchwang 
CAii  be  navigated  only  durmg  the  open  season  of  about  six  months- 
this  means  the  stormg  of  large  quantities  of  soya  beans  and  m-ain 
during  the  sprmg  months.  The  handling  of  this  traffic  by  raflwav 
has  made  a  great  improvement  m  the  situation,  m  that  the  o-ains  can 
be  transported  immediately  to  the  ice-free  port  of  Dairen.  This  has 
resulted  in  the  loss  bv  Newchwang  of  much  of  its  commercial  impor- 
taiice  since  the  completion  of  the  railway  and  the  opening  of  the  port 
oi  x/ari6n« 


n.  MANCHURIAN  RAILWAYS. 

SOUTH  MANCHURU  RAILWAY  CO. 

INTRODUCTION— EXTENT  OF  LINES. 

The  vSouth  Manchuria  Kaiiway  Co.  is  one  of  the  most  interesting  and 
instructive  developments  in  this  part  of  the  world.  The  conclusions 
that  can  be  drawn  from  the  working  results  are  particularly  significant 
as  to  what  can  be  accomplished  by  similar  methods  in  other  parts  of 
th^Far  East,  and  attention  will  be  called  later  to  some  of  these  points. 
^  The  mam  line  extends  northwestwardly  from  the  port  of  Dairen 
(formerly  called  Dahiy)  to  Changchun,  a  distance  of  437.6  miles,  of 
which  238.4  miles  at  the  southern  end  is  double  tracked.  At  Chang- 
chun connections  are  made  with  the  Harbin-Changchun  branch  of  the 
Chinese  Eastern  and  with  the  Kirin-Changchun  line  of  the  Chinese 
Government  railways.  At  Ssupingkai  comiection  is  made  with  the 
fesupingkai-Chengchiatun  line  extending  northwestwardly  toward 
northeastern  Mongolia.  The  Mukden-Antung  line  leaves  the  main 
line  about  5  miles  south  of  Mukden  and  runs  in  a  southeasterly  direc- 
tion to  Antung,  a  distance  of  170.8  miles,  where  connection  is  made 
with  the  Korean  railways.  In  addition,  there  are  important  branches, 
as  follows:  To  the  Fushuncoal  mines,  30.9  miles;  to  Newchwang  (Ying- 
kow),  13.9  miles;  to  Port  Arthur,  28.9  miles;  to  the  Yentai  coal 
mines  9.7  miles— a  total  of  981.8  miles,  not  including  the  Liushutun 
branch  of  3.5  miles. 

At  the  present  writing  no  extensions  of  the  South  Manchuria  lines 
are  contemplated,  but  the  proposed  extensions  of  the  Kirin-Changchun 
and  the  Ssupmgkai-Chengchiatun  lines  will,  for  all  practical  purposes 
effect  extensions  that  will  act  as  traffic  feeders  to  the  South  Manchuria 
system.  There  has  been  much  discussion  concerning  the  possible 
acquiring  by  the  South  Manchuria  Co.  of  about  75  miles  of  the  south- 
ern end  of  the  Harbin-Changchun  branch  of  the  Chinese  Eastern 
Kail  way,  which  would  give  access  to  the  Sungari  River  and,  by  means 
of  river  transportation,  to  all  of  the  Sungari  and  Amur  River  ports 
This  would  be  a  very  valuable  acquisition,  and  would  probably  add  a 
substantial  volume  of  traffic  to  both  outbound  and  inbound  shipments. 

--^^^^^  South  Manchuria  Railway  Co.  is  not  only  an  organization 
for  the  maintenance  and  operation  of  this  railway  property  but  is 
also  a  very  efficient  means  by  which  the  Japanese  Government  main- 
tains and  operates  an  investigation,  development,  manufacturing,  and 
transportation  organization  in  Manchuria  and  Chosen,  it  is  probable 
that  additional  branch  lines  will  be  built  for  the  future  development 
of  the  country. 

FINANCIAL  STATISTICS—OPERATING  RESULTS. 

The  tables  following  present  financial  statistics  and  operating  results 
of  the  South  Manchuria  Railway  and  its  outside  undertakings-  values 
are  expressed  in  gold.  ' 


106229*'— 1^ 


13 


103 


lAItWAY  MATERIALS,  EQIJIPMEKT,  AND  S'UPPLIES. 

WORKINQ  KESlfLTS  FOR  YEAR  ENDED  MAR.  31.  1916. 


ItfOtSi 


Main  line  railway , 

Mttkden-Antimg  railway , . . . ,  „ , 

Total  railwav 

Ftf amships and  float ine cqnipimtti. .' .' '.'.'.'.'.'. 

Tmmwaj  and  ck'ctricaTeqiiipmeflt 

Mines , , 

HarlKirs  aad  wliftrTes 

fJas  plants , , 

Worksliops 

iioie IS ».•-.-..••••••.•«.,...,,,*,.,,,, 

Land 

Land  Improrements. 

Smidrj'  'bui  diuRs 

For  property  taten  owr  from  the  JapamM 

O'Overameirt  in  lp07', . . , 

Sundry  rectlpls  and  losses. 

General  ijqwnaes  and  interest  «i   baiik 

depoalti- , 


Capital 
Invest- 
:nMnt. 


124,750,692 
13,234,125 


Total 


Interest  on  debent ures 

Wiitliif  oi' discount  on  debentum  ismm 


36,9S4,K17 
2,517,2.Hl 
■2,505,321 
8,719,6:W. 
%  910, 745 
712,919 
3,  mSi,  363 
1,013,474 
5,405,347 

5,M5,«2 

4i,SS(l,0(10 


K^eceipts. 


110,919,310 

mi,ma 


le  1  I  IP  1  i  J,.  ili!l|.>di! 

031,330 
57S,397 

6,m5,088. 

1,1I2,9» 
122,070 

756,613 


Operat- 
ing 
ratio. 


Expenses 

and 
deductions 


Per  cmu^. 
31.6 
63.6 


BxpenMt. 
13,446,817 

628, 183 


34.2 
93.2 
61.4 
S4.1 
83.9 
•)%  0 


12«l.3 


72, 3M 
180,805 


4,075,000 
60K,2:J7 
360,770 

5,304,475 

957,976 

67, 198 


Profit 

and 
loss. 


17,472,49.1 

36.3,769 


141,252 
1,242,150 


346, 717 
1,582,296 


7,836,262 

2:i,095 

217,627 

1,000,613 

184, 9  tt 

54,871 


-23,828 

-4S,\508 


-294,323. 
-1,372,491 


125,934,310     21,827,334 


67.3     14,686,071 


Total  deductions, 
l?wiitlorf«r... 


Deduftinnt. 

12,774,108 

;»9,027 


•  per  «nt  dWdund  on,  salwcri'bers*  .sliansi.... 
2  per  loent  extra  diiridwds  m  sutmcrllMn'' 

iltmiwi:,. ,.,..., , 

pt'ridands  on  JapaiwM'  6oii«ni.iiianit  alans. 

Special  resen^es, 

Meseo'e  prescribeil  by  litw *  * ' 

Bonus  to  officers 


Total  incnine'  dediicttons 

Balaneo'  for'  year  carried  to  surplus 


3,113,135 


777,660 

2i9,220 

1,246.2.50 

l,2Mi,2.-»0 

201,407 

149,550 


7,141,261 


4,028,121 


3,880,337 


147,791 


PEEFORMANCE  STATISTICS  FOE  YEAR  ENDED  MAR.  31,  I9I«. 


I'tonu. 


M iin  Ite. 


llileftofline  open... , , 

Miles  M  all  trades. ., ,.,..'"' 


M OBiibir' «f  train  miles  ran. 

Niiniitar  ol  loeowiotiTO  miles  run 

Nnraaljer  of  ▼ehide  miles  nm.. , ' * *' ' 


N'um,ber  of  paascngers  carried 

N'limbc*  of  passengers  carried  1  mile I'.'.'.'.'.'.'.'.'.'. 

CiMching  earmngs , 

Ear  I  lings  p  r  passi*'nK(«r  carried  1  aile *  ", 

Average  ride  ,per  passenger,  mllid , 

Averaips  mimlier  of  pmseogers  .carriad  per  passenger  train  niiiie 

Xumtw  ol  im» of  goods  carried 

Number  of  tons  of  go«is  carried  1  mile. , , 

(Jwxls  earnings , ,, 

liarriiugs  i>er  to::i  carried  1  mile '..'.'."'.'. 

A  vrragc  haul  im't  ton  of  goods,  miles 

Ave nigO'  nuuilxu'  of  tons  of  goods  battled  per  gcwds  iraui'mVlo! '. 

Ye-:irlr  working  recfipts  per  mile  of  open  line 

\  esr  y  working  expenses  per  :mlle  «f  open  line 

1  ftirly  opt'raling  income  per  mile  of  open  line , . . . , , 

I'oarly  transportatfoii  and  tmflc  expense  per  mile 
Yearly  maintenaiwe  of  equipment  expense  per  aiile. .. 

Year  y  maintenance  of  way  expense  per  mile '....'.'.'. 

1  earty  general  railway  expense  per  mil© , 

I  otal  yearly  expense  .per  .mile..., , ' 


521.0 
'796.8 

3,957,774 

4,.'i70,iKM» 
76,206,841' 

8>  BOO.  557 

■233, 567,  IW' 

12.185,481 

10.00877 

73.0 

192 

<l,0oi>,l03 

1,173, 834, 902 

•7.fOf»,»2 

10.00673 

193.9 
371 

'•20,959 

tl4,34;i 

M,5»l 
tl,  163 
SI, §26 
1213 
t6,616 


Mukden-An- 
tung  line. 


170.8 

125.9 

747,760 

7W,077 

%88ai,f04 

fli7,f7T 

21^,846 

1218,453 

SO.  00950 

38.  2 

59 


Total  for 
year. 


1,1M,734 

112,487,947 

1696.045 

saoimM 

80.9 
215 

S5,8oe 

wSf  Hi  o 
S2, 130 

Sl,«74 
S0I5 

SI,  298 

t3,678 


1,022.7 

4,705,531 

«y351,877 
85^092,747 

3,7(18,165 

255,261,946 

I2.413,9!)6 

So.a(m:t 

68.  K 
167 

7,44.3,817 

1,286, 322, H49 

S8, 604, 437 

SO.  0Ofi6.H 

172.8 

352 

S17,232 

S.5,  mf) 

911,3-12 

S3, 115 
SI,  027 

S20I 
*i,890 


MANCHUEIA.  195 

RECEIPTS,  EXPENSES,  AND  PEOFITS  FOR  FOUR  YEARS  ENDED  MAR.  SI. 


Items. 


1907-8 


1914-15 


Total  railway  revenues 

Total  railway  expenses ] 

I'rolJ ts from  railway  operations [.. "[['.[ 

Operating  ratio percent. . 

Total  receipts  from  all  sources 

Total  expenses  of  all  kinds 

Total  net  profit  r?om  all  sources 


S6, 249, 765 
$2,572,962 
13,676,803 

4L2 


S7, 727, 797 
51,053,621 


Sll, 573,536 
14, 160, 12.5 
S7, 413, 411 

35.9 


1915-16 


1916-17 


S8, 781, 418  122,268,302 


118,509,068 
13,759,234 


$11,911,262 

$4,075,000 
$7,836,262 

34.2 

$21  ,'827, 334 

$17,799,206 
$4,028,128 


$26,272,671 

$21,233,984 

$5,038,687 


ROLLING  STOCK. 


Items. 


Number  of  locomotives 

Number  of  carriages  of  all  classes , 

Number  of  freigfatcars  .,.. 


1916 


267 
213 

3,186 


1917 


270 

219 

3,194 


TRAMWAY  EQUIPMENT. 


Items. 

1917 

Itema. 

1917 

DAISEN  TXAMITATS. 

Miles  ofline  open 

25.58 
50 
10 

rUSHUK  TSAMWAVa 

Miles  ofline  open  . 

48.56 

11 

3 

185 

9 

Number  of  passenger  cars 

Number  of  motored  freight  cars 

Numl:>er  of  electric  locomotives' .......... 

Number  of  passenger  cars  (motored) 

Number  of  freight  cars  (for  carrying  sand). 
Number  of  steam  shovels. 

OUTSIDE  UNDESTAKINGS. 


In  addition  to  its  railway  mileage,  the  South  Manchuria  Railway 
Co.,  as  indicated  in  the  above  tables,  owns  and  operates  outside 
undertakinp,  with  a  capital  investment  of  about  $40,000,000,  not 
including  the  value  of  the  concessions  and  property  turned  over  by 
Russia  at  the  end  of  the  Russo-Japanese  war. 

The  railway  company  maintains  a  research  department  with  a 
central  laboratory  and  a  geological  laboratory.  The  central  labora- 
tory has  eight  divisions,  as  follows:  Analytical  and  applied  chemistry; 
tussah  filature;  dyeing  and  weaving  works;  ceramic;  brewing- 
hygienic;  electrochemistry;  and  experimental  bean  mill.  The  lab- 
oratory aims  at  pursuing  the  study,  from  both  the  scientific  and  the 
comi|iercial  point  of  view,  of  the  analysis  of  coal  and  iron  ores  in 
Manchuria,  the  employment  of  clay  and  siUceous  stone  as  materials 
for  glass  making,  the  method  of  manufacturing  salt,  the  uses  of  beans, 
the  rnaiuifacture  of  pulp  for  paper  from  kaoliang  stalks,  the  distilling 
of  kaoliang  spirit,  the  reeling  of  tussah  silk,  and  the  potentialities  of 
tho  botanical  products  of  Manchuria. 

The  geological  laboratory  is  intended  mainly  for  the  investigation 
'xnd  analysis  of  the  soil,  mineral  products,  etc.,  in  Manchuria  and 
Alongoha,  the  surveys  of  which  from  a  geological  point  of  view  have 
been  practically  concluded.  A  geological  map  and  a  pictorial  table 
of  mineral  products  of  Manchuria  are  in  preparation,  and  careful 
search  is  being  made  for  all  mineral  products,  particularly  coal  and 


iron. 


« 


196  'RAILWAY  MATEMALS,  EQUIPMENT,  AHB  SUPPLIES. 

By  further  reference  to  tlie  table  on  page  194  it  will  he  seen  that  the 

mines.,  tramways  and  electric  pknta,  harbore  and  wharves,  and  gas 
plants  are  showing  reasonable  profits.  The  hotels  are  operated. at  a 
small  loss.  The  End  operations  show  a  loss,  probably  on  account 
of  certain  entOT>rises  that  are  undertaken  for  the  development  of 
the  country.  Hie  largest  item  of  loss  is  the  one  of  general  expense, 
which  includes  the  investigations  and  developments  going  on  m  the 
researeh  department  and  other  similar  expenses  that  are  not  being 
allocated  to  the  Tsrious  entei-prises  directly. 

In  addition  to  those  mentioned  above,  further  developments  are 
under  way,  among  the  most  important  of  which  are  the  two  250-ton 
blast  furnaces  now  in  course  of  construction  at  Anshan,  where  later 
it  is  planned  to  erect  a  complete  steel  plant,  particularly  for  the 
manufacture  of  ship  plates  and  similar  materials.  In  this  general 
connection  it  may  be  mentioned  that  the  Kawasaki  Dockyards  Co., 
of  Kobe,  has  a  shipbuilding  plant  at  Dairen,  and  there  are  a  number 
of  other  growing  industries  at  this  point,  representing  entirely  Jap- 
anes^e  enterprise  and  capital, 

HISTOttlCAL  SURVEY— ORGANIZATION. 

A  detailed  history  of  the  South  Manchurian  branch  of  the  Chinese 
Eastern  Railway  and  the  South  Manchuria  Railway  Co.  since  its 
acquisition  by  the  Japanese  would  be  entirely  too  long  to  be  included 
in  such  a  report  as  this,  but  the  principal  facts  will  be  briefly  stated. 

The  ine  from  Harbin  to  Port  Arthur  and  Dairen  was  built  by  Russia 
under  the  terms  of  the  supplemental  agreement  shown  in  appendix 
No.  2.  The  track  was  all  standard  Russian  5-foot  gauge.  One 
result  of  the  Russo-Japanese  war  was  the  surrender  of  the  line  south 
of  KwancheiiFtze,  a  point  about  2  mies  north  of  Changchun,  to 
Japan.  The  field  railway  department  of  the  Japanese  Army  adminis- 
tered the  property  until  AprO  1,  1907,  on  which  date  tfie  railway 
and  all  the  outside  undertakings,  including  the  coal  mines,  w^cre 
turned  over  to  the  company,  which  had  already  gone  through  the 
following  formative  process:  On  June  7,  1906,  an  imperial  ordinance 
(No.  142)  was  issued  concerning  tlie  establishment  of  the  South 
Manchuria  Railway  Co.,  and  on  July  13  of  the  same  year  Gen.  Viscount 
G.  Kodama  was  appointed  president  of  the  organization  committee, 
«ompo3ed  of  80  members.  But,  in  consequence  of  the  death  of 
Viscount  Kodama,  which  occurred  on  July  24,  Viscount  Terauchi, 
Minister  of  War,  assumed  the  presidency  on  July  25. 

On  August  1  the  Government  forw^arded  to  the  committee  the 
conditions  pertaining  to  the  establishment  of  the  South  Manchuria 
Railway  Co.,  and  after  the  forination  of  the  company  had  been  pre- 
pared by  the  committee  on  the  basis  of  the  imperial  ordinance  and  in 
a-;x*ordance  with  the  conditions  of  the  Government,  the  articles  of 
association  were  approved  by  tlie  Government  on  August  18.  The 
authorized  shai'e  capital  w^as  200,000,000  yen,  par  value  of  shares 
200  yen.  The  right  to  hold  shares  was  limited  to  the  Imperial 
Japanese  Government  and  the  Imperial  Chinese  Government,  now 
the  Renublic  of  China,  and  subjects  of  these  two  countries.  It  is 
arobable,  however,  that  very  few,  if  any,  of  the  shares  were  ever 
leld  by  Chinese.  For  the  property  turned  over,  the  Imperial  Japan- 
ese Government  received  a  total  of  500,000  fuBy  paid-up  shares,  or 
60  per  cent  of  the  total  amount  authorized,    fhe  subscribed  stock 


MANCHURIA. 


197 


{ 


under  the  provisions  of  several  articles  is  granted  6  per  cent  divi- 
dends, and  in  June,  1914,  a  revision  of  the  articles  of  association  per- 
mitted the  payment  of  an  additional  2  per  cent  if  2  per  cent  was 
paid  on  the  Government  shares.  At  least  one-twentieth  of  the  net 
profits  are  to  be  set  aside  as  a  reserve  fund  until  this  has  reached 
one-quarter  of  the  authorized  capital,  and  dividends  on  the  Govern- 
ment shares  are  limited  to  5  per  cent  per  annum.  Instead  of  paying 
this  amount  it  appears  to  be  the  general  policy  to  retain  an  amount 
equal  to  the  dividend  paid  on  Government  shares,  usually  2i  per 
cent,  m  the  form  of  a  special  reserve.  In  addition,  the  Imperial 
Government  of  Japan  guarantees  interest  on  debentures,  of  which 
there  are  now  outstanding  £12,000,000  ($58,398,000  gold),  one-half 
paying  5  per  cent  interest  and  the  other  half  4i  per  cent.  The  arti- 
cles of  association  limit  the  amount  of  debentures  that  may  be 
issued  to  double  the  authorized  outstanding  capital  shares,  including 
those  held  bv  the  Government. 

The  board  of  directors  was  originally  composed  of  a  president, 
vice  president,  and  at  least  four  directors,  with  from  three  to  five 
auditors,  but  the  recent  reorganization,  now  in  effect,  provided  for  a 
board  of  directors  with  a  director  in  chief  and  four  directors  at 
Dairen  and  one  director  at  Tokyo,  as  shown  by  the  directory  given 
on  page  270.  The  president  and  vice  president  formerly  were,  and 
the  du-ector  in  chief  now  is,  appointed  by  Imperial  sanction.  Tlie 
directors  are  appointed  by  the  Government  from  among  the  share- 
hokiers  and  the  auditors  are  elected  by  the  shareholders. 

Baron  Y.  Goto  was  appointed  president,  Mr.  Z.  Nakamura  vice 
president,  and  Mr.  S.  Kunisawa  leading  director  in  November,  1906. 
In  July,  1908,  when  Baron  Goto  was  appointed  Minister  of  Com- 
munications, Mr.  Nakamura  was  raised  to  the  presidency  and  Mr. 
Kunisawa  promoted  to  the  vice  presidency,  both  of  them  remainincr 
m  office  untd  December,  1913,  when  they  were  succeeded  by  Dr. 
JVomura  as  president  and  Mr.  D.  I  to  as  vice  president.  They  in 
turn  retained  office  until  July,  1915,  when  they  wwe  succeeded  by 
Lieut.  Gen.  Baron  Y.  Nakamura  as  president  a«d  Dr.  Kunisawa  as 
vice  president.  This  arrangement  continued  untd  the  reorganiza- 
tion and  consohdation  with  the  Korean  railways ;  at  that  time  Bai-on 
Nakamura  retu-ed  and  Dr.  Kunisawa  is  now  director  in  chief. 

On  July  31,  1917,  the  administration  of  the  Korean  railways  was 
consolidated  with  that  of  the  South  Manchuria  Railway  Co.,  but 
since  that  time  the  organization  has  been  modified  in  several  ways 
untd  It  is  now  as  indicated  by  the  directory  (see  p.  270) ;  it  is  complete 
for  nandimg  not  only  the  railway  operations  but  all  the  outside  un- 
dertakings ^as  well.  The  administration  of  the  Korean  railways  is 
known  as  the  "Korean  section." 

The  working  of  this  entire  arrangement  seems  to  be  very  satisfac- 
tory, and,  in  view  of  the  growing  financial  success  from  year  to  year 
It  would  certainly  appear  that  the  organization  methods"of  the  South 
Maiicliuna  Railway  Co.  can  be  studied  with  much  benefit  in  relation 
to  their  bearing  on  other  similai-  situations  in  the  Far  East.  While 
this  organization  conforms  to  the  departmental  system  characteristic 
ol  government  railways,  and  there  is  not  a  distinct  commercial  de- 
partment, there  is  nevertheless  a  close  and  thorough  study  of  the 
traffic,  including  the  means  of  meeting  developing  conditions.  This 
last  IS  a  special  feature  of  the  selling  of  transportation  in  any  part 


ii 


lAILWAY  MATEBIAL8,  ■^BQ:IFIFM«:HT,  AH0  SUPPLIES. 

of  the  world,  bat  is  the  one  mmt  fp«|iien%  lacking  in  the  govem- 

.mcat  operation  of  railways'. 

OPBKATIMC  METMO'HS. 

The  method  of  train  running' conforms,  strictly  to  tlw  8tation-m,aster 

system  'already  referred  to  in  connertion  with '"the  Japanese  railwa^ys. 
All  signaling  is  d'Oiig  the  lines  of  the  British  Board  of  Trade  practice 

and  is  al  very  limited,  hotli  for  signals  and  interlocking.  The  same 
remarks  conferning  modern  methwls  of  signaling  and  selective  tele- 
phone apparatus  for  central  control  apply  here  as  in  coimffction  with 
the  Imperial  Government  Railways  of  tlapaa. 

.QIVIHllllIllff . 


■€»i«T«iic»ioii  emm  and 

The  tables  on  page  194  show  the  general  statistics  for  the  main  lino 
and  branches  as  one  group  and  for  the  Mukden-Antnng'  line  as.  an- 
other group,  with  a  summary  for  the  whole,  for  the  .year  ended  M.arch 
31,,  1'916.  In  the  .column  **Capit.al  investmenV'  the  item  of 
I49,.850v000'  rejpresents  the  T,aluation  put  on  the  property  taken 
over  fro.m  the  .Russian  Government  at  the  end  of  the  Kusso-Japanes.© 
W.ar,.  and  in  this  la  included  .all  the  oth.ex  property  rights  and  con- 
eessiom  as  well  .as  the  railway.,  which  had  been  changed  from  th© 
Kussian  5-foot  gauge  to  the  .Japanese  3-foot  6-inch  gauge  during  tho 
w,ar.  ^  This^  also  included  the  2-foot  6-inch  gauge  ■military  railway, 
which  h.a8  since  been  recons.  true  ted  .into  the  Mukden-Antung  line. 
There  .apparently  has  Wen  no  effort  to  aiocat.e  to  the  different  under- 
takings the  division  of  this  valuation  of  the  original  property. 

The  other  items  in  this  colu,nin  show  the  ciipit.al  expe.nditures  on 
the  various  u.ndertakings.  The  raOway  expendit'ures  include  tlio 
expenses  incurred  in  changing  the  main  line  and  branches  from  3-foot 
64nch  to  4-foot  8|-in.ch  .gauge'  and  the  reconstruction  of  the  Mukden- 
Antung  line  into  the  present  standardiacd,  gauge,  which  involved  the 
practical  rebudding  of  this  entire  line,  mostly  on  .new  location. 
Without  attempting  to  .allocate  the  original  property  the  capital 
investment  of  the  main  Miie  .avcr^es.  .$47,505  per  mile  of  line  .and  of 
the  .Antu,ng  line  171,630,,  or  |.53,4.S0' jjiar  .mil.e  of  li.ne  for  the  entire 
system..  Outside  of  the  .Bairen  and  Port  Arthur  harbors  and  towns 
there  w.ffls.  not  a  great  deal  of  actual  property  other  than  that  of  the 
railway,  and  whOe  the  mim..ujg  concc!ssio.us  were  of  great  value  there 
was  very  Mttle  actual  plant  when  t.he  Japanese  acquii-ed  the  property. 

The  mining  plant  at  the  .Fuahun  coal  m.iiies  is  modern  and  up-to- 
date  in  even-  respect  and  has  ■'heen  .iitotalled  entirely  by  tlie  South 
.Manchuria  Kail  way  Co.  These  same  remarks  applv  to  the  other 
undertaki.ngs  of  this  most  excellently  equipped  property,  especially 

tile  Shakafa i  workshops  .and  the  .Dairen  trauiw.ays  mid  electric  light 

and  gm  plants. 

TtAf .riC  AND  BATia.. 

The  South  Manchuria  Railway  is  one  of  the  exceptio.ns  in  this' part 


of 
fi 


f  the  world  to  the  .rule  tliat  passenger  earnings,  at  the  start  exceed 
pciglit  earnings.    The  freight  earnings  of  tlie   South  Manchuria 
Railway  have  iil.ways  largely  exceeded  the  passenger  earnings. 

The  ijerformance  statistics  show  passenger  earnings  per  mile  .as 
less  than  0'.9  cent  and  average  e.arn.ings  per  ton  mile  of  freight  as 
less  than  0.7  cent,  with  the  very  low  m^  of  0.625  cent  on  the  Antung 


MANCHURIA. 


199 


liiie^this  latter  condition  probably  bein^  due  largely  to  the  prefer- 
ential rates  for  freight  via  tlie  Korean  Railway  and  this  line  on  sliip- 
ments  between  Japan  and  China,  in  connection  with  which  there  s  a 
reduction  of  one-third  of  the  usual  Chinese  customs  duties  when  tlie 
goods  enter  Mancluiriii  at  Antiing. 

Passenger  fares,  whil(^  called  first,  second,  and  third  class,  wore  in 
reality,  first,  third,  and  fourth  class,  and  the  rates  formeily  wcit^  f>, 
2.7,  and  1.8  sen  per  mile,  but  in  October,  1917,  these  were  changed 
to  5,  3.5,  and  2.8  sen  for  first,  second,  and  third  class  passengers, 
ami  tliere  was  established  what  is  the  equivalent  of  the  coolie  fare 
on  some  of  the  Chinese  railways. 

While  the  freight  handled'  is  very  varied,  coal  constitutes  the 
largest  single  item,  amounting  to  about  2,500,000  tons  from  the 
Fushun  and  Yentai  mines  and  about  300,000  tons  from  the  Penchihu 
mines.  The  next  largest  and  most  important  item  for  the  country 
as  a  whole  is  the  soya  bean  and  its  products. 

One  feature  that  is  being  worked  out  with  particular  care  is  the 
warehousing  of  goods,  both  imports  and  exports.  This  feature  was 
taken  in  hand  under  orders  from  the  Japanese  Government  in 
October,  1908,  and  while  it  was  fairly  well  handled  at  Dairen  it  was 
not  well  provided  for  at  the  other  stations  along  the  line.  Improve- 
ments, however,  wore  made  from  time  to  time.  In  September, 
1911,  regular  warehouses  were  established  at  Dairen,  and  since  then 
25  or  more  subordinate  warehouses  have  been  established  along 
the  line  and  an  arrangement  has  been  instituted  for  insuring  the 
stored  goods.  This  has  had  a  very  beneficial  effect  on  the  general 
commercial  business  of  this  enture  region. 

BAKNmGS.  EXPENSES.  AND  PROFrTS. 

The  table  on  page  195  shows  that,  with  an  increase  of  about  one- 
third  in  the  mileage  (almost  entirely  on  account  of  the  opening  of 
the  Antnng  line),  the  earnmgs  have  almost  doubled  during  the 
nine-year  period  from  1907  to  1915,  inclusive.  During  this  same 
period  the  operating  ratio  was  reduced  from  41.2  to  34.2  per  cent, 
profits  from  the  railway  operation  more  than  doubled,  and  the 
results  from  all  sources  increased  nearly  five  times;  at  the  same  time 
increased  amounts  were  set  aside  lor  special  revenues.  The  detailed 
results  for  1916  are  not  available,  but  for  that  yeai  the  amount 
retained  for  discount  of  debentures  was  double  that  for  the  previous 
year,  and  an  8  per  cent  dividend  was  paid  to  the  shareholdei*s.  The 
special  reserve  fund  on  March  31,  1917,  was  $7,926,150,  while  the 
amount  actually  required  by  law  is  only  $1,113,727.  During  the 
period  above  mentioned,  substantial  improvements  have  been  made 
m  the  condition  of  the  property. 

From  these  performance  figures  it  is  quite  obvious  that,  not- 
withstanding the  amounts  being  expended  in  developing  the  outside 
undertakings,  this  corporation,  as  a  whole,  is  becoming  very  profit- 
able. The  area  served  is  not  at  all  densely  populated  as  conditions 
go  in  the  Far  East,  and  this  part  of  the  country  is  of  only  the  average 
productiveness  for  China.  Therefore  one  seems  warranted  in  calling 
attention  to  these  results  as  an  example  of  what  can  be  accomplished 
by  ably  operated  railways  m  other  parts  of  China. 


BAILWAY  MATERIALS,,  BQ,IJIPirE'NT,  AKD  SUFPUEa 
RB9ULTS  or  O'OTSIDE  DNDEtTAKINGa. 

The  outside  iiii,der takings  of  tlw  corporation  are  of  great  impoi-t- 
aiice.  It  is  difficult,  to  dotermiiio  tlie  order  of  tlicir  i,mj)orta.nc-(\  hut 
at  present.  !lic»  eoal  mining  is  proliably  first  (as  shown  by  ihv  tiMv  on 
page  194)  and  is  now  returning  tlie  largest  profit.  The  sliipping  lines, 
liaihors,  whnrves.  tramways,  el(H:*tiicity  and  gas  plants,  and  'work- 
shops are  all  very  important,  and  one  of  "the  importimt.  future  develop- 
ments will  l>e  the  iron  mining  and  smelt.ing  and  the  st^eel  manufacture 
for  which  plants  are  now  in  eouree  of  construction.  While  the  land 
enterprises  show  a  loss  from  operation,  it  is  largely  through  tliis 
medium  that  the  agiiculture  of  the  country  is  being  improved. 

Tlie  tramways  include  only  those  at  Daw-en  and  Fushun,  and  the 
only  gas  plant  is  at  Daircn.  Tlie  electrical  undertakings  include  the 
furnishing  of  com;mercial  electricity  at  Dairen,  Mukden,  Changchun, 
Antiing,,  and  Fushun,  with  othere  contemjjlated.  The  hotels  are 
those  at  Daiien,  Hoshigaura,  Mukden,  and  Changchun,  and  the  lour 
Korean  Railway  hotels  at  Seoul,  Fusan,  Shingishu,  and  Diamond 
Mountain.  The  land  department  includes  the  management  of  th© 
railway  area.  The  company,  while  assuming  the  obligation  of  pro- 
viding the  noojssary  arrangements  lor  education,  public  works, 
hygienic  welfare,  etc.,  in  the  railway  "area,  was,  on  the  otiier  hand, 
empowered  by  the  Government  to  collect  a  house  rate  and  other 
necessary  assessments  from  the  residents  in  the  railway  area— subject 
to  the  Government's  sanction— in  order  to  recoup  the  outla3-s. 

In  1907,  when  the  company  took  up  the  management  of  the  rail- 
way area,  there  were  settlement  councils  at  various  centers  along 
the  railway.  The  company  thought  it  expedient  to  utilize  them  to 
act  as  Its  agents,  but  discontinued  their  exiMrimental-  utilization  in 
October  of  the  same  year.  The  company  established,  instead, 
district  agencies  at  Liaoyang,  Mukden,  Chaiagchun,  and  four  other 
places.  At  present  district  agencies  are  maintained  at  the  following 
11  railway  towns:  Dairen,  Wafangtien,  Tashilikiao,  Liaoyang, 
Mukden,  rieHmg,  Kaiyuan,  Kuiigchuling,  Changchun,  Pencliihu, 
and  Antung.  In  addition,  there  are  model  industrial  towns  at  the 
hhakako  workshops  and  the  Fushun  mines.  Eleven  other  towns 
•'^  ^™g  ^4^1*^^'  some  of  which  are  now  well  toward  completion. 

rhis  administration  includes  the  operation  of  markets,  slaughter- 
houses, vegetable  farms,  various  kinds  of  welfare  establishments, 
hospitftls,  sanitation  and  fire  departments,  amusement  parks,  and 
very  complete  arrangements  for  the  schooling  of  all  Japanese  chil- 
dren m  the  railway  area.  In  brief,  conditions  are  made  as  attractive 
and  as  profitable  as  possible  for  the  Japanese  emplovees  in  the 
•dnimistration  and  operation  of  all  the  railway  company's  under- 
takings. The  environment  of  the  Japanese  section  of  toe  mining 
town  of  Fushun  is  probably  equal,  if  not  superior,  to  that  of  any  other 
place  in  the  world  where  nearly  7,000  tons  of  coal  are  mined  per  day; 
this  condition  is  particularly  noticeable  when  compared  with  that  at 
the  coal-mining  centers  in  Japan, 

.■MKOYBIS  AND  WAG.I8. 

The  writer  was  not  able  to  obtain  information  that  would  make 
possible  sucii  an  an.alysi8  of  wages  as  m^as  given  for  the  Japanese  and 
the  Korean  railways.     On  March  31,  1915,  there  was  a  total  of 


MANCHUKIA. 


201 


22,833  officials  and  railway  and  general  emplovees  (this  does  not 
iiiclude  such  enterprises  as  the  Fushun  mines).  'Of  tliese  4,714  were 
ofRcials  and  18,119  were  termed  employees.  Of  the  latter,  8,443 
were  Japanese  and  9,676,  or  more  than  '53  per  cent,  were  Chinese. 
In  the  1915  number  of  a  small  publication  put  out  by  the  South 
Manchuria  Eailway  the   following  significant  statement  is  made: 

•  Lhinese  coolies  are  being  hired  in  place  of  Japanese  laborers  for  the 
dual  reason  that  the  former  cost  less  and  are  more  convenient  in 
dealing  with  Chinese  customers."  In  July,  1917,  more  than  -70  per 
cent  of  the  employees  of  the  Shakako  works  were  Chinese  none  of 
whom  were  employed  in  the  administrative,  technical,  or  "over- 
head-expeiise"  positions.  The  writer  was  informed  that  the  per- 
centage of  Chmese  in  tlic  wage  positions  had  materially  increased 
since  March,  1915.  It  is  safe  to  say,  however,  that  the  wage  em- 
ployees are  not  paid  any  higher,  and  are  probablv  paid  lower" wages 
than  similar  employees  on  the  Korean  railways.  One  reason  for 
this  IS  the  larger  percentage  of  natives  employed  on  the  Manchurian 
railways.  At  the  Fushun  mines  before  the  war,  the  daily  wage  of 
the  Chinese  miners  and  laborers  averaged  25  gold  sen  (equal  to  12.^ 
cents  United  States  currency)  per  day.  It  is  now  30  gold  sen,  and 
while  this  IS  an  increase  in  the  railway  area  of  Manchuria  where 
Japanese  money  is  the  prevailing  currency,  outside  this  area  it  is  not 
actually  equivalent  to  the  former  wages  on  account  of  the  increased 
price  of  silver  m  the  last  two  years. 

The  writer  made  an  effort  to  compare  the  wages  in  the  Dairen 
shojps  with  those  m  the  Tangshan  shops  of  the  Chinese  Peking- 
Mukdeii  Railway,  and  his  conclusions  were  that  the  wages  of  artisans 
and  laborers  were  practicallv  on  a  par  in  the  two  establishments 
although  m  some  respects  the  Tangshan  shops  probably  pay  higher 
wages, 

ROADWAY  AND  TEACK. 

The  country  traversed  by  the  main  line  has  no  particular  diffi- 
culties for  railway  building,  and  the  line  is  of  low  grade,  well  located 
and  substantially  built  with  permanent  structures.  The  bridges  are 
capable  of  carrying  heavy  equipment;  the  track  is  laid  with  heavy 
rail  well  tied  and  ballasted  mostly  with  broken  stone.  Tlie  Mukden- 
Antung  line  runs  through  a  much  rougher  country  than  the  main 
line,  and  the  location  and  construction  were  more  difficult  and 
expensive;  it  is,  however,  well  located  and  substantially  constructed 
and  while  some  temporary  locations  were  first  used  these  have  been 
largely  replaced  by  reconstructed  line,  most  of  which  has  now  been 
completed.  There  are  24  tunnels  on  the  line,  the  longest  being  about 
4,900  feet  and  the  second  longest  about  3,250  feet.  A  great  deal  of 
bridging  was  required  for  the  line,  there  being  a  total  of  205  bridges 
and  213  culverts.  ** 

'i  here  is  also  a  very  considerable  tendency  toward  standardized 
track  practice  and  the  manufacture  of  much  of  the  roadway  and 
track  material  at  the  Shakako  works  where  all  of  the  structural 
and  bridge  work  has  been  taken  care  of  for  some  time.  Much  of  the 
existing  track  material  has  come  frem  American  sources,  and  the 
track  construction,  in  general,  is  practically  along  American  lines 
As  on  the  Japanese  and  Korean  railways,  considerable  trouble  has 
been  experienced  in  some  places  with  floods  damaging  the  roadway 


I:  I 


lit 


202 


EAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


li.  IP' 

but  much  of  this  danger,  particularly  on  the  Antung  line,  has  been 
nlf.^«™^  ^  judicious  grading  changes  in  raising  the  track  at  such 

LOooMonvn. 

Tlic  number  of  locomotives  averages  0.4  per  mile  of  line.    Of  the 

iLtlZ"!^^^^^'  .*  '^^^  number  arc  of  American  manufacture, 
borne  of  the  largest  and  most  recent  were  built  in  the  Sliakako  works- 
most  of  these  were  2-8-0  freight  locomotives  with  1^3,000  nounds 
onort^"'''*  drivers,  weiglit  of  engine  and  tender  complete  about 
^>J2.)00  pounds,  180-pound  boUer  pressure,  and  superheated 

At  present  the  South  Manchuria  Railway  has  24  locomotives  on 
order  in  America,  but  it  is  probable  that  the  greater  number  of  these 
are  mtended  for  the  Korean  section,  which  %  not  so  well  equipped 
with  motive  power  as  the  main  lines.  There  were  also  in  course  of 
w^o  W'„„T  ^''/^'^  yiter  visited  the  works,  9  locomotives,  which 
were  largdy  mtended  for  the  Korean  lines.  In  addition,  4  iocomo- 
tiv^  were  m  course  of  erection  for  the  Ssupingkai-acngckiatun  line. 

1  he  present  electnc  locomotive  equipment  for  the  Fushun  tram- 
ways was  erected  at  these  works.  Several  additional  electric  loco- 
motives were  in  course  of  construction  in  1917.  Most  of  the  enuip- 
ment  had  come  from  American  sources,  but  three  smaU  locomotives 
had  equipment  that  came  from  Germany  before  the  beginning  of  the 

Oii,e  rather  interestbg  feature  regarding  the  2-foot  6-inch  mum 
mllum  stock  of  the  original  Mnkden^Antung  line,  which  consist^  of 
Ml  locomotives,  15/  passenger  c^are,  and  3,727  goo^da.  wagons  has 
been  their  use  for  the  light  railways  in  Chosen  and  also,  to  a  certain 
extent,  in  Japan.  Tins  supply  is  now  exhausted,  however,  and 
additional  equipment  miU  have  to  he  obtained  by  purchase  from 
other  sourcra,  *^  ^ 

Tliese  jines  have  about  0.3  passenger  car  per  mile  of  line,  which 
eonsidenng  the  amount  of  business  handled,  is  below  normal  This 
equipment,  however,  is  well  adapted  for  handling  the  traffic.  Most 
of  the  equipment  is  of  American  manufacture  and  is  aU  along  tlie 
Imes  of  American  standard  practice.  In  the  last  three  or  four  vears 
liowcyer,  a  considerable  amount  bas  been  built  at  the  Slmkako  works' 
mcludiiig  two  steel  under-frame  dining  cars,  three  combination  coaches 

r!^;.fr^-''Tl  •'ll.T  ^W«'  f"sj  ^^^  "^^^  tJie  writer  visited 
tiie  works  in  July,  1917,  additional  equipment  was  in  course  of  con- 

Mi-uction,  .includuig^  10  passenger  cars,  and  60  freight  cais  for  the 

'^JJPingKai-aiengchiat^      hue. 

pr.nll.^^*?t^"!T'  f^^  *'^".  "f  I^^'^j^^  *^«  '«^t  substantial 
eciuipment  that  has  been  built  m  the  Far  East.     The  under  frame  is 

entirely  of  steel,  robustly  coiistructed  and  designed  to  take  all  the 
draft  strain  tJiroiigh  the  center  longitudinal  girder.  Tlie  trucks  are  of 
six-wlieei  Fullman  type;  tlie  couplers  are  Buhoup  automatic  three- 
stem,;  qmck-action  automatic  air  brakes  with  18  by  12  inch  cyhnders 
are  _used ;  the  cars  are  electrically  lighted  and  steam  heated  from  the 
eimoe;  the  wheels  are  36  inclies  in  diameter  and  are  steel  tired  with 
Biild  steel  plate  centers;  and  the  journals  are  5  bv  9  inclies.  The 
general  dimensions  ,are  m  follows;  Lengtli  between  coupler  kuuckle 
faces,  80  feet  3  Miches;  height  of  coupler  center,  2  feet  11  inches;  heio-ht 


MAWCHURIA. 


203 


0f  the  floor  top  from  rail,  4  feet  5  finches;  extreme  height  from  rail, 
15  feet  H  inciies;  extreme  width,  10  feet  4h  inches;  car  body,  out- 
side length,  72  feet  7h  inches;  outside  width,  10  feet  IJ  ioches; 
truck  wheel  base,  10  feet  6  inches;  total  wheel  base,  G7  feet.  The 
tare  weight  of  these  cars  is  122,000  pounds. 


FREIGHT  CARS. 


The  freight  equipment  of  all  classes  averages  4.7  cars  per  mile  of 
line;  this  figure,  with  the  amount  of  business  handled,  indicates  that 
the  equipment  is  being  worked  to  full  capacity.  There  are  5  refrig- 
erator cars,  18  oil-carrying  tank  cars,  119  caboose  cars,  215  100,000- 
pound-capacity  coal  cars,  and  the  remainder  of  the  equipment  con- 
sists of  60,000-pound-capacity  covered  and  open  cars,  a  considerable 
inimbor  of  which  are  gondola  cars  for  handling  coal.  All  this  rolling 
stock  is  equipped  with  automatic  couplers  and  air  brakes.  The 
wheels  are  all  :il^  inches,  chilled  cast  iron;  they  are  now  being  pro- 
duced at  the  Shakako  works,  which  are  also  producing  steel  cast 
centers  as  required.  All  freight  cars  are  equipped  with  four-wheel 
trucks,  A  very  large  part  of  this  freight  equipment  is  of  American 
manufacture,  but  the  Shakako  works  are  turning  out  an  increasing 
amount  each  year  and  are  reducing  the  percentage  of  parts  and 
materials  required  from  the  outside. 

WORKING  EQUIPMENT. 

These  lines  have  a  small  amount  of  working  equipment,  most  of 
which  is  now  in  use  at  the  Fushun  mine,  where  there  are  now  in 
service  nine  steam  shovels  and  one  drag-line  dredge,  as  well  as  a 
considerable  number  of  Western  side-dump  cars.  There  is  very  little 
wrecking  and  similar  equipment  on  the  other  parts  of  the  line.  The 
harbor  department  has  a  small  amount  of  dredging  equipment  and 
barges — ^used  entirely  in  the  construction  and  maintenance  of  the 
harbors  at  Dairen  and  Port  Arthur. 

WORKSHOPS. 

special  attention  has  been  given  to  the  matter  of  workshops  on 
these  lines.  In  addition  to  the  Shakako  works,  near  Dairen,  which 
have  already  been  referred  to  repeatedly,  there  are  additional  dis- 
trict shop  fficiiities  near  the  Dairen  wharves  and  at  Liaoyang,  Kung- 
chuling,  and  Antung.  There  are  also  equipment-handlmg  facilities, 
or  what  are  teimed  '^running  sheds,"  at  Changchun,  Penchihu,  and 
several  other  points,  in  addition  to  considerable  shop  equipment  at 
Fushun  for  taking  care  of  both  the  coal-carrying  railway  equipment 
and  the  so-called  tramway  equipment  (particularly  electric  locomo- 
tives) for  the  switching  work  around  the  mines.  All  of  these  shop 
facilities  except  the  Shakako  works  are  for  taking  care  of  the  running 
situation  and  are  arranged  only  for  the  making  of  current  repairs. 

The  Shakako  works  are,  however,  the  most  important  in  the  Far 
East  to-day  from  the  standpoint  of  the  manufacture  of  railway  equip- 
ment. The  shops  of  the  South  Manchuria  Railway  were  originally 
located  in  Dairen,  but  these  quickly  became  inadequate  and  the 
present  site,  comprising  about  400  acres  of  well-adapted  land  about 


Z-'UtI 


lAILWAY  MATEEIALS;,  IQUIFMEHT,  AHB  SUPPLIES. 


4  miles  from,  Dairen,  in  close  p,roxim,ity  to  the  main  line,  w,as  selected 
and  the  D'aireii  tramways  were  extencled  to  the  main  entrance.. 

The  general  arrangement  m  a  model  in  many  respects.  Some 
parts,  particularly  the  locomotive  shops,  conform  dosely  to  the  Phila- 
delphia &  Heading  shop  at  .Reading,  Pa..,  the  plans  of  which  were 
followed  m  general  The  plant  consists  of  a  very  complete  and  well- 
equipped  machine  .shop,  engine-erecting  shop  with  one  100-ton  and 
two  30-t.on  overhead  cranes,,  smith  and  forge  shops,  iron,  steel,  and 
brass  fo'Undries,  complete  samTiiill  and  woodworking  shops,  passenger- 
car  shops,,  inclnding  a  well-designed  paint  shop,  and  ,freight-car  shops, 
witli.  ,a,ll  the  necessary  facilities  in  tlie  way  of  electrical  shops,  general 
stores.,  power  house  and  lightning  plant,  and  the  shops'  own  system 
of  watenvorks,  inchiding  fire  protection.  In  brief,  the  shops  consti- 
tute a  xeTX  complete  general  manufacturing  })lant  for  the  production 
of  all  kinds  of  railway  equipment  and  materials,  including  roadway 
and  track  m.ateriab,  especi,ally  bridge  work  and  fabricated  structural 
materials.  During  the  last  three  years  the  works  have  designed  and 
built  three  meter-gauge  locomotives  for  the  French  Indo-China  rail- 
w.ay8.  'They  ,li,ave  also  built  some  large  lathes,  more  than  50  of 
which  have  gone  to  the  Bussian  Govem„ment  and  a  number  of  which 
,have  been  sold  to  concerns  in  the  Osaka  industrial  district  of  Japan.. 
Tliey  have  handled  ai  the  lieavy  castings  and  fabricated  all  the 
requirements  for  the  new  150-toii  blast  furnace  at  Penchihu  and  are 
furnishing  all  the  materials  for  the  two  250-ton  blast  furnaces  and 
steel  plant  now  under  construction  at  Anshan.  When  the  writer 
visited  the  works  in  July,  1917,  there  was  in  course  of  construction  a 
large  amount  of  fabricated  and  distilhng  equipment  for  a  new  oil 
refineiT  being  built  in  the  northern  part  of  the  main  island  of  Japan. 

In  July,  1917,  there  were  about  4,160  employees  of  all  classes,  of 
whom  71  or  72  ner  cent  were^  Chinese— all  employed  in  the  wage 
occupations.  All  salaried,  administrative,  and  technical  positions 
,are_  occupied  by  Japanwe,  .as  is  also  tlie  case  with  all  supervising 
positions,  such  as  those  of  foremen,  gang  bosses,  and  sim,ilar  employees 
who  have  to  do  with  keeping  the  .m,en  busy  and  on  the  move.  The 
writer  was  particularlj'  .impressed  with  the  .fact  that  the  men  .in  all 
departments  were  busily  engaged.  A.  visit  to  these  works  affords 
very  convincing  proof  of  the  canaeity  of  the  robust  northern  Chinese 
to  make  good  workmen  in  such  shops,  especially  in  molding  of  all 
kinds,  in  fabricating  and  erecting  work,  and  m  machine-tool  men. 
One  interesting  featui-e^  in  the  engiueerkig  o.ffice  was  the  large  per- 
cent.age  of  Japanese  girls,  employed  in  m,ak.ing  tracings  and  dohig 
some  of  the  less  difficult  drawing.. 

General  sanitary  '0on'di,tion3  in  these  works  are  excellent,  and,  in 
add,itio.n,,  there  is  near  by  a  model  town  which  was  first  arranged  to 
take  care  of  Japan^ese  employees,  but  to  which  additio,ns  have  been 
made  to  take  care  of  a  portion  of  the  Climese,  particularly  those  with 
fa.milit«.  There  are  now  nearly  1,000  dwellings  in  this  colony  (sm.all 
but  substantial  and  comfortable);  water  is  supplied  from  the  shops 
waterwo,rks;  gas  is  furnished  from  Dairen;  and  many  o.f  the  better 
houses  are  electrically  lighted.  There  has  grown  up  also  a  co,nsid- 
erable  population  imm.ediately  outside  the  Emits  oi  the  model  vil- 
lage; the  latter  .has  been  extended  to  take  care  of  some  of  this 
growth,  and  probably  will  be  extended  further  in  the  future.  Alto- 
getlier,  this  model  town  is  a  most  unusual  feature  of  this  part  of  ihQ 


MAKCHUBIA. 


205 


world;  but,  like  similar  towns  in  other  parts  of  the  world,  it  has 
obviously  proved  its  value  to  the  company  as  well  as  its  benefit  to 
the  employees. 

The  directory  of  the  principal  officials  of  the  South  Manchurian 
Railway,  including  the  Korean  section,  is  shown  in  order  on  page  270. 


PURCHASES. 


Both  the  South  Manchuria  Railway  and  the  Korean  Railways,  as 
already  stated  several  times,  have  purchased  much  of  their  equip- 
ment, materials,  and  supplies  from  American  sources.  A  consider- 
able part  of  this  business  has  been  handled  directly  through  American 
concerns.  Many  of  the  requirements  in  the  future,  particularly  in 
the  way  of  special  parts  and  materials,  will  no  doubt  be  supplied 
from  the  United  States,  but  much  of  the  business  will  probably  ba 
conducted  through  the  strong  Japanese  commercial  and  engineering 
concerns  with  well-staffed  branches  at  Dairen,  such  as  the  Mitsui 
Bussan  Kaisha,  Takata  &  Co.,  and  Okura  &  Co.,  all  of  which  have 
strong  American  connections.  There  is  no  doubt  that  this  practice 
is  steadily  growing  both  in  Manchuria  and  Korea,  as  well  as  in  Japan 
proper.  There  is  also,  however,  a  great  tendency  for  these  concerns 
to  represent  Japanese  manufacturers  who  are  in  a  position  to  make 
delivery.  The  latter  will  doubtless  be  given  preference  in  awarding 
the  business,  when  other  things  are  equal,  even  though  the  prices 
for  the  Japanese  products  may  be  liigher  than  for  those  from  other 
Bources.  One  particular  part  of  the  business  that  will  probably  be 
of  considerable  volume,  if  followed  up,  will  be  the  furnishing  of  the 
special  parts  and  materials  for  the  equipment  to  be  manufactured 
and  erected  at  the  Shakako  works. 

Purchases  are  negotiated  principally  by  the  stores  department  at 
Dairen,  although  it  is  stated  that  the  Korean  section  will  continue 
to  make  purchases  of  articles  that  can  be  obtained  locally  along  the 
line  and  from  the  concerns  with  branches  in  Seoul.  In  some  in- 
stances purchases  are  handled  through  the  Tokyo  office,  but  this  is 
only  in  special  cases  when  the  business  can  be  conducted  to  better 
advantage  with  concerns  in  Tokyo  that  may  not  have  special  repre- 
sentatives in  Daii'en  or  Seoul. 

EIRIN-CHANGCHUN  RAILWAY. 

LOCATION  AND  EXTENT. 

The  Kirin-Changchun  Railway,  while  nominally  a  Chinese  Govern- 
ment railway,  is  now  actually  under  the  control  of  Japanese  interests, 
through  the  management  of  the  South  Manchuria  Railway  Adminis- 
tration. For  this  reason  it  was  shown  under  a  subheadfing  in  the 
Chinese  Government  Railways  tabulation,  was  not  included  in  the 
s(\ oral  statistical  tables  of  these  railways,  and  is  now  shown  as  one 
(*f  tlie  railways  in  the  area  of  the  Japanese  "sphere  of  influence''  in 
Manchuria.  These  same  remarks  apply  to  tne  Ssupingkai-Cheiig- 
chiatun  Railway,  immediately  following. 

€*onnection  is  made  with  the  South  Manchufia  Railway  at  Ciiang- 
chun,  where  the  latter  company's  central  passenger  station  is  used; 
this  station  is  also  used  by  the  Harbin-Changchun  branch  of  the 
Chinese  Eastern  Railway.  The  present  line  extends  in  a  general 
easterly  direction  about  80  miles  to  Kirin,  the  capital  of  the  Man- 


■Zll"tj 


lAILWAY  MATEBIALSj  BQIUPM'EyT,  AWD  SUPPLIES. 


clmrian 
■extension 
i,s  made  wi 


jinm  of  Kirin.    'Tiie  teniiim»  at  Kirin  includes  an 

tte  banks  of  'tlie  Simgari  River,  where'  freight  connection 


river  triific. 

Altlioujrh  linesJiad  preyiouslv  been  suggested  to  Kirin,  particular! v 
o!u^  oxtension  of  the  Pekmg-Sfukdon  Railway,  this  particular  line 
was  first  proposed  in  1900.     Work  was  not  sturted,  Lwever,  until 

n\  I        .2^^^i    .^?  ^*"®  T®*'  ^^^^^y  ^P^'»*^  ^^^  gmeml  traffic  in 

* *''T.->t)(T,  1912,  but  this  was  done  with  some  temporary  construction 

<>i:i'  part  of  winch  is  not  .yet  completed.  ' ' 

CONSTKITCTWN  COST  AN©  INVtSTM'ENT  ASSOTS. 

Mr.  G.  A.  'Kvle  in  his  study  of  the  construction  cost  of  tlie  Ohineso 

ifovenimcnt,  Railways,  shows  the  cost  of  this  line  as  $78,261  Mcx 
per  mile  of  line.  Tins,  however,  does  not  represent  the  final  cost. 
on  tccoiint  of  the  expense  still  to  be  incurred  in  building  about  4 
miles  of  line  on  the  final  location,  including  a  tunnel  3,000  or  4,000 
feet  in  length.  'The  consolidated  report  for  'the  Chinese  Government 
Kailwajs  for  1915  showed  the  total  cost  of  road  and  equinmeiit 
earned  t:o  the  balance  sheet  as  16,193,595  Mex.,  but  this  has  been 
increased,  somewhat  since  that  date  on  account  of  the  completion'  of 
a  small  amount  of  ttie  construction  and  the  purchase  of  nine  loco- 
motives from,  America, 

rmma  amd  cwwrr'HOL. 

«i^?i^^^"S!i"*i  ^*^%^^"'^^  partly  with  funds  from  a  2,150,000  yen 
(11,071,-  io  gold)  loan  from  the  lokohama  Specie  Bank  (Japanese) 

and  the  rem,ainder  of  the  funds^  was  furnished  by  the  Chinese  Gov- 
em/ment  from  other  sources.  In  the  latter  part  of  1917  a  further 
lo,an  was  negotiated  bj  the  Clunese  Government  with  the  Yokohama 
hpecie  Bank,  the  total  amount  being  6,500,000  yen  ($3,240,250  gold) ; 
this  includes  the  former  loan  of  2,150,000  yen.  Tliis  loan  is  for  a 
term  of  30  years.,  was  issued  at  91.5,  and  the  rate  of  interest  is  5  per 
cent  per  an,nnm  The  property  and  .revenues  of  this  railway  a,re 
security  ,for  the  loan,  although  it  was -never  stated  that  the  loan  was 
made  for  further  development  of  this  line.  In  the  announcement  of 
this  loan  the  followirg  statements  were  made: 

.Diiriiig  the  term  of  the  loan  the  South  Manchuria  Eailwav  Co.  shull  be  intniBted 
r!firl^'r«S!T'**''*  t  ^^  ^'^"^  ^"^^^  ^^  "^^  "^^"^'^  2  pm  cent  ol  tlie  not 


The  (,  twese  (,ove,rnment  AaD,  appoint  a  director  to  Biipervifle'  all  affairs  of  the 
railway     The  SoMh  Maiichom  PaiUy  Co.  Aall  ,appoint  cliiefB  for  the  en^iJeri  w 
trapsportation  and  accoiiiite  de^partmeiitu,  one  of  wLm  almll  represent,  the  Japanew 

baiikere  and  ,Aall  have  full  pom-er  to  ,act  in  accordance  with  the  stipulationfi  1?^ 
H  there  is  aiiv  mportiint  affair  to  lj,e  considered,  the  representative  of 'the  Jai>ai  esa 
l:aiiker8,  mil  liave  to  coiKilt  the  Chinese  director  beforihand.  J^iu^eso 

Therefore,  although  this  is  nominally  a  Chinese  Government  line 
I'i'cler   th,e  direction   of  the  Mnistry  of  Communications    with '  a 

^ T'*-T  ^'^^mm  diiector  ,in  general  charge,  it  will  in  fact  hecome 

a,  ieeder  to  the  bouth  Manchuria  Railway,  being  to  all  intents  and 

purposes  under  Japanese  control.    By  tliis  arrangement  the  road 

will  no  doubt  be  efficientlj  managed  and  the  property  improved  and 

developed,.  *     *      •?       i 


MANCHURIA. 


EXTENSIONS  SUGGESTED. 


207 


Various  plans  and  suggestion^  have  been  made  for  extensions  of 
tlie  Kirin-Changchun  Railway,  and  without  doubt  one  of  the  objecte 
of  the  loan  just  mentioned  was  to  prepare  the  way  for  the  utilization 
of  this  line  as  part  of  a  system  of  lines,  one  of  which  will  be  the 
Kirin-Hweining  Railway,  discussed  on  page  208.  Another  line  likely 
to  be  built  may  follow  the  Sungari  River  for  a  short  distance  and 
tlien  turn  to  the  northeast;  it  will  probably  be  extended  to  the 
headwaters  of  the  Hurka  River  and  follow  this  to  Lake  Birten  or 
Ninguta,  in  which  neighborhood  a  turn  to  the  southeast  would  be 
made,  with  the  line  running  to  the  Tumen  River  in  northeastern 
Oiosen  and  then  to  the  port  of  Seishin  or  Keiko.  From  Ninguta  a 
line  would  probably  be  built  to  connect  with  the  Chinese  Eastern  at 
Harbin.  Tliesc  new  lines  would  total  several  hundred  miles  of  rail- 
way—much of  it  througli  rather  rough  terrain  and  a  considerable 
portion  through  well-timbered  country,  the  products  of  which  will 
be  much  in  demand  in  this  part  of  the  world  in  the  next  few  years. 

TRAFFIC. 

The  business  of  this  line  at  present  is  about  40  per  cent  passenger 
and  60  oer  cent  freight,  and,  with  the  development  of  the  country 
and  further  extensions,  no  doubt  the  freight  traffic  will  increase  at  a 
greater  rate  than  the  passenger  business.  Agricultural  products 
constitute  about  60  per  cent  of  the  present  freight  traffic,  lumber  20 
per  cent,  manufactured  products  15  per  cent,  and  mineral  products 
5  per  cent,  animal  products  being  negligible. 

EARNINGS  AND  EXPENSES. 

The  gross  earnings  for  1916  were  $933,444  Mex.  and  the  operating 
expenses  $756,379  Mex.,  making  an  operating  ratio  of  81  per  cent. 
It  is  doubtful,  however,  whether  the  figure  given  represents  sufficient 
expenditure  to  fully  maintain  both  roadway  and  rolhng  stock. 

INCOME  CHARGES  AND  LOSS. 

After  payment  of  interest  charges  on  funded  debt  and  all  other 
income  charges  there  was  a  deficit  of  about  $50,000  Mex.  Although 
it  is  possible  that  the  results  from  this  property  will  be  improved 
untler  the  virtual  management  of  the  South  Manchuria  Railway 
Administration,  it  is  hardly  likely  that  it  will  show  a  profit. 

ROADWAY  AND  TRACK, 

The  hue  lies  through  a  roiling  country  w^here  railway  construction 
is  not  particularly  difficult,  although  a  good  deal  of  bridging  was 
required.  The  line  is  fairly  well  located  and  constructed  mostly  with 
permanent  structures.  The  track  at  present  is  laid  with  60-pound 
rail,  which  came  from  the  Han-Yeh-Ping  Steel  Works,  but  it  is  stated 
t  hat  as  soon  as  prices  become  normal  it  is  to  be  laid  with  85-pound 
rail  of  the  same  weight  and  section  as  much  of  the  South  Manchuria 
line.  The  line  is  tied  fauiy  well  and  ballasted  largdv  with  broken 
stone.  The  track  work  conforms,  in  general,  to  that  on  the  Ciiinese 
Government  Railways  (particularly  the  Peking-Suiyuan),  especially 
the  frogs,  switches,  and  similar  materials.     The  brixlges  seem  some- 


208 


RAILWAY  MATERIAM,  IQUIPMINT,  AMD  SUPPLIES. 


what  light  for  carmiig  heavy  motive  power.    It  was  stated  that 

these  were  for  loacfing  between  CoQper'  E-~35  and  E~-40.     Most '  of 

th«e  bndges  were  fabrieattid  at  the  Shanhaikwari  Bridge  Works  .of 
the  .Fekiiig-Miikden  Railway. 

BOLLING  STOCK. 

o«T¥  ^^¥^^^  ^^^^  'roiisists  of  22  locomotives,  25  passenger  cars,  and 
227  freight  cars.,  with  no  service  cars.  ,M  of  this'  equipment,  except 
Slocomotivcs,  w:as  fn,rni8hed  from,  the  Tangshan  sho'ps  of  the  Peking 
Mukden  Kailway.  The  9  locomotives  were 'furn is hecf  from  the  UnitcMl 
htates  early  in  1916.  This  roMing  stock  is  ai  equipped  with  Janiiey- 
I  mn  automatic  eourfers.  Passenger  cars  are  aU  equipped  with  air 
brakes,  and  the  freight  equipment  averages.  46,500  pounds  carrying 
capacity  per  car.  The  locomotives,  including  the  9  new  ones.*  are 
somewhat  light  for  handling  the  traffic  economic aJlv^-particuiarlv 
over  the  steep  grades  of  the  teniporarv  line  at  the  point  that  is  to  bo 
reconstructed,  whieh-  is^near  the  mddle  of  t.he  liiic  and  governs,  the 
trainJoad  .m  both  directions.. 

WOBESMOPS.. 

^  'There  are  smal,!  shops  at  Changchun.  'These,  however  a.re  not 
intended  for  the  manufacture  of  equipment,  but.  only  for  the  makin^*^ 
of  .miscellaneous  and  general  repairs..  With  the  new  mana.gement  it 
18  very  likely  that  the  furnishing  of  equipment,  and  also  probably'  the 

handling  of  heavyjepairs.,,  will  be  taken  care  of  in  the  shops  of  the 

oouth  M.anchuria  .Kailway. 

"  OrriCIAM— PU1CHA.91M. 

A  dirwtOTv  is  given  in  order  on  page  272,  hut  this  does  not  include 

the  ckief  of  the  traiic  department  called  for  by  the  new  agreement 

Bince  this  appointment  .had  not  been  made  w£en  the  writer  visited 
ChangcMm. 

Purchases  were  formerly  largely  directed  by  the  Japanese  chief 
engineer  t.li.rough  the  Chinese  managing  director,  but  it  is  probaW© 
that  the  arrangement  in  the  future  will  be  for  the  chief  engineer  to 
.liandl,e  tiis  business  Wely  tlu-ough "  the  purchasing  department  of 
the  houth  Manchuria  .Radway,  including  the  drawing  on  the  eeiieral 
storeroom  at  Dairen  and  the  Shakako  workshops. 

SIGNING  OP  COOTKACT'  FOl  KIRIN-HWEINING  KAILWAY. 

Tlie  iin >st  im.Dortant  raiway  development  in  the  Far  East  since 

llie  mei-ger  of  the  Korean  Railways  with  the  South  Manchuria  Rail- 
way on  Au.gu.8t  1,  1917,  was  the  signing,  on  June  18,  1918,  by  the 
(..1,i,i.uese  Mi,,irister of  ■Cbmm.iniications  ami  representatives 
b^rtiiking  syndicate,  of  the  prelim.inary  contract  for  the  construction 
M_  the  kirin-Hweining'  (or  iOrin-Kwainei)  line.  This  new  railway 
w.!il  t.i'aver8e  eastern  Manchuria  (Province  of  Kirin)  to  the..  Korea.n 
iHiriliT.  wdiere  it  wii  connect  with  the  Kwainei-Seishin  Railway  to 
tlie  bea  of  Japan,  giving  t.he  South  Mancimria  Railway  a  new  deep- 
wiiter  outlet  .fwid  opening  a  new  and  rich  territory  to  commercial  and 
.i..iMl.us.tr.ial  exploitation.  .It  w.ill  also,  through  its 'connection  at  Kirin 
cit J  With  the  Kirm-Changchun  line,  which  ,in  turn  coimects  at  Chang- 


MANCHUEIA. 


209 


chun  with  the  Chinese  Eastern,  provide  the  Trang-Siberian  route  with 
an  ice-free  terminus  at  Seishin  as  an  alternative  to  Vladivostok. 

The  preliminary  contract  provided  for  an  immediate  advance  of 
10,000,000  yen  at  7i  per  cent  by  the  Japanese  syndicate,  which  is 
composed  of  the  Bank  of  Taiwan,  the  Bank  of  Clhosen,  and  the  Indus- 
trial Bank  of  Japan,  in  exchange  for  Chinese  treasury  notes  for  six 
naonths,  at  the  end  of  which  period  the  formal  contract  was  to  be 
signed.  The  Japanese  banks  were  pledged,  on  the  signing  of  the 
formal  agreement,  to  float  for  the  Chinese  Government  lo-year  5  per 
cent  bonds  for  an  amount  sufficient  to  refund  tlie  10,000,000  yen 
advance  and  to  complete  the  construction  of  the  railw^ay. 

The  preliminary  contract  did  not  indicate  the  method  of  operation 
of  the  new  line,  but  it  is  assumed  that  it  will  be  on  a  basis  similar  to 
that  of  the  Kirin-Changchun  line,  which  belongs  to  the  Chinese  Gov- 
ernment, but  is  operated  under  Japanese  supervision,  by  the  terms 
of  a  loan  of  6,500,000  yen,  in  a  way  to  make  it  essentially  a  part  of 
the  South  Manchuria  Railway. 

Tlie  route  of  the  railway  from  Kirin  to  Hweining  (Kwainei)  will 
follow  the  old  caravan  road  from  Kirin  southeastward  over  the  Haerpha 
Mountains,  through  the  so-called  West  Yenki  district  of  Kirin  Prov- 
ince, to  Lungchingtsun  and  thence  through  Huolikow  Pass  to  the 
Tumen  River,  the  boundary  between  Kirin  and  Chosen  (Korea). 
Over  this  river,  which  is  a  wide,  shallow  stream,  navigable  only  by 
rafts  and  very  small  boats,  an  international  bridge  will  be  built,  the 
Chinese  Grovernment  and  the  ffovernment  general  of  Chosen  each  pay- 
ing  half  the  cost.  Trains  will  run  from  this  point  over  the  Kwainei- 
Seishin  Railway  (Kwainei  being  the  Japanese  name  for  Hweining)  to 
the  sea. 

Seishin  as  a  port  dates  only  from  the  Russo-Japanese  war.  Before 
that  time  it  was  a  Korean  village  of  about  200  inhabitants.  It  was 
opened  to  trade  in  1908  and  a  Japanese  town  sprang  up,  which 
increased  rapidly  in  size  and  importance  after  the  buflding  of  the 
hght  railway  and  still  more  rapidly  after  the  standardization  of  the 
radway  in  1917.  In  the  decennial  report  of  the  Chinese  Maritime 
Customs  for  the  northern  ports,  1 902-1 911,  this  statement  is  made :  "  It 
IS  predicted  by  some  that  when  the  Kirin  Railway  is  extended  to 
Kwainei  and  connected  up  with  Seishin,  the  latter  place  will  become 
a  great  exporting  port—in  fact,  the  shipping  point  for  the  surplus 
products  of  all  eastern  Manchuria;  in  other  words,  it  wiU  rival  Vladi- 
vostok and  take  away  a  large  part  of  its  present  trade.''  The  com- 
missioner of  customs  at  Lungchingtsun  remarks,  however,  that  he 
thinks  that  Seishin  will  never  outstrip  Vladivostok.  The  harbor  at 
Seishin  is  not  exceptionally  good,  though  it  is  one  of  the  best  on  the 
northern  Korean  coast  and  is  usually  ice-free.  It  is  wide  and  deep 
but  too  open.  Two  breakwaters  have  been  built,  inclosing  an  area 
of  10  acres,  which  has  been  sufficient  for  the  needs  of  the  port  thus 
IV  r.  Undoubtedly  the  breakwater  system  will  now  be  extended  by 
the  government  general  of  Chosen. 

The  distance  over  which  the  Kirin-Hweining  (or  Kirin-Kwainei) 
Radway  will  run  is  approximately  410  miles— 320  mOes  from  Kiiin 
to  Lungchingtsun,  20  miles  from  Lungchingtsun  to  Huolikow  Pass, 
and  70  miles  from  the  pass  to  the  end  of  the  hne.    Though  the  road 


10G229°— 19- 


2W  EAILWAT  MATBIIAI18,  .IQITIPMEHT,  AMD  SUPPLIES. 

isjo  cross  three 'rivers  and  two  mountain  ranges,  the  enirineerini^ 

ditticttlties  are  said  not  to  be  great.  ^  '^ 

hilwir'Zf''*^''**^'*'""'^  f  Jif  ■? '"P-Hweining  Railway  13  from  a  report  siibmiticd 
Pekii^f  C««n«»ioiier  A.  W...  Pemo,  whw  he  wts  acting  m  commerdal  attache  at 

SSOTDf GKAlJCmNGCmATUN  EAILWAY.  ■• 
.lo€::ation  anb  iiriNsiOMa 

This  line  connects  with  the  South  Manchuria  Railway  at  Ssupinffkai 
and  runs  ,n  a  northwesterly  direction,  toward  Inner  MongoliS,  a 
distance  of  about  52  mdcs  to  the  important  city  and  trade  center  of 

l!!f !f    f  T'     ^  ^'^•^*'''  extension  of  about  150  mOes  to  this  line 

liis  .already  been  considered,  and  as  soon  as  materials  can  be  obtained 
Ins  nocbubt  will  be  made  by  the  same  interest  that  built  the  present 
line.  Tbi»se  extensions  will  reach  the  upper  ralleys  of  the  Liao  River 
m  Inner  Mongolia  claimed  as  part  of  the  Japanese  ' 'sphere  of  influ- 
cnce.  riiis  country  is  rich  in  both  agricultural  and  pastoral  prod- 
nets,  mdj,t  m  also  stated  that  there  are  valuable  fuel  anrf  other  mmcral 
deposits  to  be  reached  by  extensions  of  this  line.  ' 

msToticAL  aopvEf. 

The  history  of  this  line  is  very  brief  and  recent.  It  may  be 
regarded  as^one  of  the  important  results  of  the  agreement  between 
tiapan^  and  Kussia  m  to  the  areas  of  the  * '.sphere  of  influence"  thai 
,was  all,pcated  to  Japan  in  Southern  Manchuria  and  Eastern  Innw 
Mongolia,  This,  no  doubt,  is  also  a  counteracting  line  against  the 
€hinrhow~Aig^^  hne  projected  between  Chinchow  on  t^  Peking- 
Mukden  Railway  and  Aigun  on  the  Amur  River.  An  effort  was  macTe 
ai^one  time  by  American  capital  to  secure  the  concession  for  buUdinir 
tins  last.  line.  ^ 

The  loan  agreenient  for  the  financing,  construction,  and  operation 
of  this  line  IS  with  the  Yokohama  Specie  Bank  (Japanese)  and  m 
dated  December  29, 1915,  as  shown  by  Appendix  No.  9  of  this  report 
llie  first  location  surveys  were  made  in  July,  1916,  work  was  started 
early  in  1917,  and  the  line  was  opened  for  traffic  in  November  1917 
rhis  however,  was^with  considerable  temporary  construction,  pari 
ticularly  bridges,  which  wdl  have  to  be  rebuilt,  as  mentioned  later. 

flTMBS  Ann  CO'NTHOL. 

/•  J^ni^-!!?  ^Tr  ¥  «o^*™P*i«n  were  furnis.hed  by  the  5,000,000  yen 
(12,492,000  gold)  loan  previously  mentioned.  The  term  of  the  loan 
m  40  years,  the  rate  of  interest  5  per  cent  per  annum,  amortization  to 
begin  the  eleventh  year  and  to  be  effected  by  semiannual  payments- 
but  the  loan  can  be  redeemed  in  part  or  in  whole  by  payment  of 
21  per  cent  premium  until  the  end  of  the  twentieth  year  and  then  can 
be  redeemed  at  par.  The  issue  m-as  made  at  94.6,  and  the  railway 
property  and  revenues  are  pledged  as  security  for  the  loan  which 
B  also  guaranteed  b^  the  Chinese  Government,  as  to  both  principal 
and  interest.  This  is  one  of  the  cases  in  which  a  railway  was  built 
to  develop  a  claimed  '^sphere  of  influence,"  largely  if  not  wholly  to 
meet  the  desire  of  interest*  other  than  Chinese;  but,  notwithstandiiiff 
tills,  the  Chinese  Government  guarantees,  the  loan. 


MANCHURIA. 


211 


While  the  agreement  calls  for  a  Chinese  managing  director,  it 
requires  both  the  chief  engineer  and  the  chief  accountant  to  be  Japa- 
nese, and,  in  addition,  during  construction,  most  of  the  administra- 
tive and  technical  staff  wore  Japanese.  The  Japanese  chief  engineer 
and  chief  accountant,  being  permanent  employees,  will  no  doubt  lie 
in  virtual  charge  of  the  property,  particularly  as  the  operating 
agreement  has  been  made  with  the  South  Manchuria  Railway  for  the 
hire  of  rolling  stock  and  the  exchange  of  traffic,  including  the  use  of 
the  latter  company's  station  facilities  at  Ssupingkai. 

CONSTRUCTION  COST  AND  CAPrTAL  LUBILmES. 

The  construction  cost  was  estimated,  on  account  of  the  high  cost 
of  materials,  at  $120,000  (Mex.)  per  mOe,  and  thus  a  total  of'' about 
$6,000,000  (Mex.)  would  represent  the  cost  for  the  present  line.  It 
is  generafly  imderstood  that,  with  the  present  price  of  silver,  the 
5,000,000  gold  yen  will  not  be  sufficient  to  complete  the  construc- 
tion, and  it  is  also  stated  that  thus  far  only  3,500,000  yen  of  the  loan 
has  actually  been  issued,  although  there  is  little  doubt  that  the  re- 
mainder will  be  made  available  to  complete  the  line  as  far  as  possible. 

The  amount  of  the  loan  issued  constitutes  the  capital  liability  to 
date. 

ROADWAY  AND  TRACK. 

Tlie  present  line  is  through  a  rich  agricultural  country  where  rail- 
way construction  is  comparatively  easy,  except  for  the 'considerable 
amount  of  bridging  required,  which  will  he  expensive  for  permanent 
structures  on  account  of  the  extreme  difficulty  of  foundation.  This 
is  particularly  true  of  a  bridge  of  more  than  2,100  feet  across  the  Liao 
River,  where  a  temporary  structure  has  been  built;  but  on  account 
of  the  floods  occurring  in  this  river  during  the  rainy  season  permanent 
structures  will  be  built  as  soon  as  possible.  The  investigations  of  the 
foundations  for  this  last  bridge  indicate  that  the  substructure  work 
will  be  extremely  difficult  and  expensive.  All  the  other  bridges  are 
now  temporary  structures,  and  it  is  planned  to  rebuild  them  as  per- 
manent structures  in  the  course  of  time.  There  is  no  stone  or  timber 
along  any  part  of  the  present  line,  and  both  have  had  to  be  shipped 
m  by  the  South  Manchuria  Railway;  this  includes  broken  stone  for 
ballast.  The  track  is  laid  with  85-pound  rail,  which,  with  the  fast- 
enings, came  from  the  Han-Yeh-Ping  Steel  Works.  The  South 
Manchuria  8- f oot-6-inch  standard  ties  were  used,  and  the  track 
materials  and  work  are  very  similar  to  the  practices  on  the  latter 
line;  in  fact,  much  of  the  material  was  actually  received  from  the 
South  Manchuria  stores  department. 

ROLLING  STOCK. 

So  far  all  the  rolling  stock  used  has  been  leased  from  the  South 
Manchuria  Railway.  There  are  on  order  in  the  Shakako  works  4 
locomotives,  10  passenger  cars,  and  60  freight  cars,  all  along  the 
standard  lines  of  construction  of  the  South  Manchuria  line,  but  the 
delivery  of  these  has  been  delayed  on  account  of  special  parts  and 
materials  required  but  not  delivered.  It  is  very  likely,  however,  that 
part  of  this  equipment  will  have  been  delivered  by  the  time  this 
report  is  in  prmt. 


212  :IIAILWAY  MATEBIALS,  EQUIPMENT,  AND  SUPPUIS.. 


WO'KKSHOPS. 

RtiJining  elieds  and  small  workshops  are  being  provided  at  Ssu- 
ingkai.     Tliose  are  apparently  intended  only  for  the  making  of 
ciirrent  and  general  repairs,  and  are  not  intended  for  the  manufacture 
or  equipment.     It  is  more  than  likely  that  many  of  the  shop  require- 

meiits  of  this  hue  will  be  taken  care  of  at  the  Shakako  works  of  the 

himih  Manchuria  Railway. 

TRAFFIC  AND  EARNINGS. 

The  traffic  of  the  present  line  will  largely  consist  of  agricultural 
products  obtained  along  the  line  and  both  agricultural  and  pastoral 
products  from  Cbengcbialun.  It  is  reported  that  the  earnings  of  the 
loie  for  the  hrsl  few  weeks  aToraged  about  2,750  yen  ($1,370  gold)  a 
week,  which  is  somewhat  better  than  the  showing  of  the  Mukden- 
Antung  branch  of  the  South  Manchuria  Railway  when  first  opened 
lor  traflic.  1<  rom  all  appearances  one  seems  warranted  in  predicting 
that  this  line  will  do  a  considerable  volume  of  business,  and  particu- 
tail V  that  it  wiU  make  a  valuable  traffic  feeder  to  the  South  Manchuria 
llauway. 

OfFIOALS— PO'WCHASIS, 

Mr.  Yu  Yu  (Chinese),  formeriy  managing  director  of  the  Kirin- 
UiaiM^ehim  Radway,  is  now  the  managing  director  of  this  line  and 
Mr,  J.  .I^ujine  (Japanese)  is  chief  engineer. 

Purchases  for  this  line  were  made  largely  by  the  chief  enc^ineer 
(Japanese)  subject  to  approval  by  the  managing  director  (Chmese) 
Ihe  rail  fastenings  came  from  the  Han-Yeb-Ping  steel  plant,  and  the 
structural  materials  will  be  furnished  from  the  Shakako  works  as  will 
also  be  the  case  with  the  rolling  stock  requirements.  It  is  entirely 
OTobable  tiiat  in  the  future  requirements  will  be  arranged  for  larc^elv 
through  the  South  Manchuria  Railway  porchasing  lepartment  at 
Dairen,  drawing  on  this  company's  Dairen  storeroom  and  the  Shakako 
workshops. 


in.    RUSSIAN    RAILWAYS    IN    MANCHURIA    AND    EASTERN 

SIBERIA. 

INTRODUCTION. 

Wliile  the  heading  of  this  section  of  the  report  is  ''Manchuria/' 
It  seems  desirable  to  explain  the  general  situation  as  regards  the 
Russian  railways  in  eastern  Siberia.  The  Chinese  Eastern  Railway, 
Southern  Ussuri  Railway,  Amur  Railway,  Pin-Hei  Railway,  and 
Amur  River  steamer  lines  are  in  a  way  under  one  general  adminis- 
tration, and  the  Chinese  Eastern  and  the  Southern  Ussuri  are  manacred 
as  one  system.  ° 

This  is  a  very  interesting  situation,  about  which  much  could  be 
written,  but,  until  some  settlement  of  the  present  chaotic  conditions 
is  effected,  such  a  discussion  would  have  very  httle  point  in  relation  to 
markets  for  railway  equipment  and  materials.  The  writer  visited 
Changchun,  Harbin,  Nikolsk,  and  Vladivostok  in  August,  1917,  but 
was  unable  to  obtain  information  directly  from  the  railway  officials 
on  account  of  the  large  number  of  changes  that  had  already  occurred 
and  the  disturbed  conditions  prevailing  even  at  that  time.  There- 
fore, the  following  account  will  refer  very  briefly  to  the  situation  and 
give  an  idea  of  the  general  arrangement. 

The  lines  in  which  we  are  interested  are  the  Chinese  Eastern  Rail- 
way--the  part  of  the  Trans-Siberian  line  in  Manchuria—and  the 
Southern  Ussuri  Railway— the  part  of  the  Trans-Siberian  line  from 
the  eastern  Manchurian  border  to  Vladivostok.  The  other  lines  are 
mentioned  for  the  reason  that  this  can  be  done  much  more  briefly 
^ISP-  ^if y  ^^^  combined  than  when  they  are  referred  to  separately. 

The  Chmese  Eastern  Railway  includes  all  that  part  of  the  Russian 
Tranfe-Siberian  route  that  Hes  in  Manchuria.  It  consists  of  the  main 
hue  running  west  from  Pogranichnaya  (Suifenho,  Chinese  name) 
on  the  Ussuri  border  to  Manchuria  (ManchouH)  on  the  Trans- 
Baikal  border,  a  length  of  about  926  miles,  and  a  branch  south 
from  Harbin  to  Kwanchengtze  (a  point  about  2  miles  north  of 
tliangchun),  from  which  place  the  South  Manchuria  Railway  owns 
the  tracksgiving  entrance  to  the  central  station  used  by  all  railways 
entering  Oiangchun. 

The  Southern  Ussuri  Railway  starts  at  the  port  of  Vladivostok  and 
runs  north  a  distance  of  about  68  miles  to  Nikolsk.  Shortly  after 
passing  this  place,  a  turn  is  made  and  the  line  runs  west  to  Pogranich- 
naya, a  distance  of  about  143  miles  from  Vladivostok.  In  addition 
what  may  be  called  a  section  of  the  Amur  route  contmues  north 
from  Nikolsk,  fo  lowing  the  Ussuri  River  to  its  junction  with  tlie 
Amur  Kiver  at  Khabarovsk,  or,  as  it  is  frequently  called,  Habarovsk 
liiis  hne  between  Vladivostok  and  Khabarovsk  was  the  first  part 
built  of  the  eastern  end  of  the  Trans-Siberian  route,  work  beino- 
officiaUy  started  in  May,  1891,  at  Vladivostok.  "" 

It  is  not  generally  known  that  the  Amur  Railway— running  parallel 
to,  and  15  to -60  miles  from,  the  north  side  of  the  Amur  River  from 

213 


m 


214  lAItWAY  MATERIALS,  BQUIPMENT,  AFD  SUPPLIES. 

piiibarovsk,  to  a  pomt  Jrat  east  of  Chita,  a  place  about  300  miles 
farther  west  than  Manchuria  station  and  about  650  miles  east  of 
Wkntsk—is  connected,  and  that  trains  are  being  mn  by  this  route. 
While  this  line  is  connected,,  it  is  not  balias/ted  or  in  serviceable 
condition  for  reliably  handlingregular  traffic. 

The  bridge  across  the  Amur  River  at  Khabarovsk  is  approximately 
7,600  feet  in  length,  was  opened  in  November,  1916,  required  live  years 
to  build,  and  cost  about  18,000,000  rubles,  or  approxim'ately 
$9,000,000  gold.  The  construction  of  this  bridge  was  contracteii 
for  in  Austria,  but,  as  most  of  the  material,  was  on  the  ground  at 
the  opening  of  the  war,  it  was  ieished  by  the  Russian  engineers. 

There  is  one  branch  from  the  main  hne  to  the  important  city  of 
Blagovestchensk,  on  the  Amur  River  nearly  opposite  Aigun  and 
Tfthieho,  the  northern  terminus  of  the  proposed  Cliinchow-Aigun 
Railway. 

During  the  navigation  season  of  about  six  months  the  Amur 
River  steamer  lines  form  a  very  important  feature  of  the  trans- 
portation situation  in  this  part  of  the  world.  Tliese  steamer  lines 
cover  not  only  the  Amur  River  but  its  navigable  tributaries,  of  which 
there  is  a  ven^  considerable  number,  the  Sungari  being  the  most 
important.  Much  of  this  transportation  is  done  by  native  Chinese 
craft,  but  in  the  last  25  vears  there  has  grown  up  a  fleet  of  Russian 
river  steamers  and  trailer  barges.  The  Chinese  Eastern  Railway 
01W1S  13  of  these  steamers  and  30  barges.  In  the  operation  of  tliis 
river  traflic  one  steamer  at  times  tows  as  many  as  five  good-sized 
barges.  In  recent  years  most  of  these  steamers  and  barges  have 
been  operated  as  a  combination,  under  the  direction  of  Messrs. 
Oparim  and  Alexieff,  two  well-known  merchants  of  Harbin.  This 
combination  included  the  leasing  of  some  of  the  Chinese  Eastern 
fioatinff  equipment  above  mentioned.  It  is  access  to  this  system  of 
navigable  rivers  that  is  desu-ed  by  the  Japanese  in  acquu-ing  the 
additional  75  miles  of  the  Harbin-Changchun  brancli,  so  as  to  reach 
th^  first  crossing  on  the  upper  part  of  the  Sungari  River,  where  it  is 
still  navigable  by  t,hese  river  steamers. 

As  ,regards  the  projected  Pin-Hei  Railway,  it  may  be  noted  that 
a  prehminary  agreement  was  made  between  Russia  and  Cliina  in 
1915  and  1916  for  building  a  line  from  Harbin  to  Mergen  and  then 
on  to  Aigun  and  Taheiho  on  the  Amur  River,  with  a  hraneli  from 
the  Chinese  Eastern  Railway  at  ,Angangki  through  Tsitsihar  to 
Mergen,  to  connect  there  with  tlie  other  line.  Tliis  railway,  according 
to  the  agreement,  was  to  be  buil,t  by  Russia  as  a  Chinese  Government 
railway  and  to  be  guaranteed  by  the  Chinese  Government,  but  it 
would  be  entirely  for  the  benefit  of  Russia,  particularly  from  a 
strategic  standpoint.  The  line  would  be  tlirough  a  rather  rough 
country  but  one  rich  in  both  agricultural  and  pastoral  products. 
Apparently  little  or  nothing  is  known  about  the  mineral  resources 
along  this  line. 

THl  mm  Of  ¥M»I¥08T0E. 

Vladivostok  is  a  very  excellent  'port  with  deep  water  in  the  harbor, 
and  with  the  ice  breakers  now  used  it  is  actually  kept  open  for 
nav,igation  all  the  year  round.  This  result  is  greatly  ass,Kted  by  the 
favorable  winds  during  the  winter,  wliich  blow  in  a  direction  tending 


MAFCHURIA. 


215 


to  drive  the  broken  ice  to  sea.  Tliere  are  large  warehouses  along 
*  !*^^ge  part  of  the  water  front,  all  of  which  are  served  directly  by 
railway  tracks.  These  facilities  are,  however,  more  for  the  handling 
of  inbound  materials  and  manufactured  products  than  for  outbound 
shipments.  During  normal  times  soya  beans,  bean  oil,  and  bean 
cake  constitute  one  of  the  largest  items  of  export.  The  beans  are 
handled  in  sacks  in  a  way  quite  similar  to  the  methods  of  handling 
wheat  in  AustraUa. 

CONDmONS  AT  HARBIN. 

Harbin  is  the  administration  headquarters  for  the  Chinese  Eastern 
and  the  Southern  Ussuri  Railways.  The  town  is  divided  into  two 
distinct  parts.  The  railway  and  civil  administration  is  in  a  part 
of  the  town  lying  on  the  high  ground,  but  on  account  of  the  port 
facilities  and  for  other  reasons  a  large  part  of  the  civil  population 
lives  in  what  might  be  called  the  lower  town.  Harbin  is,  without 
doubt,  the  most  important  commercial  center  in  all  of  central  and 
northern  Manchuria,  and  it  is  the  principal  port  for  the  fleet  of  river 
steamers  above  mentioned.  The  tracks  of  the  Chinese  Eastern 
Railway  extend  for  a  considerable  distance  along  the  river  front, 
where  transfer  is  made  directly  from  railway  cars  to  the  river  steamers 
and  barges,  and  from  this  point  shipments  are  made  to  all  the  places 
reached  by  this  system  of  navigable  rivers.  It  would  undoubtedly 
be  of  great  benefit  to  the  development  of  all  this  region  if  the  Harbin- 
Changchun  branch  of  the  Chinese  Eastern  Railway  were  changed 
to  4-foot  8i-inch  gauge,  thus  enabling  shipment  to  be  made  directly 
from  China  and  Southern  Manchuria  to  these  river  wharves.  Tliis 
is  one  of  the  reasons  why  the  Japanese  have  made  such  persistent 
efforts  to  secure  control  of  this  branch. 

FINANCES,  MANAGEMENT,  AND  EQUIPMENT  OP  LINES. 

So  many  writers  have  already  fuUy  covered  this  situation  that 
It  seems  unnecessary  to  include  any  historical  statement  in  this  report 
other  than  what  has  already  been  said  and  what  is  given  in  Ap- 
pendix 2. 

CONSTRUCTION  COST  AND  CAPITAL  LIABH^mES. 

The  Far  Eastern  Review,  in  its  railway  number  of  November,  1909, 
shows  the  cost  of  the  Chinese  Eastern  Railway  as  $90,000,000  gold. 
This  has  been  added  to  somewhat — chiefly  on  account  of  reconstruc- 
tion, though  it  is  very  probable  that  some  of  the  additional  amount 
was  spent  on  other  than  strictly  railway  expenditures.  There  seems 
to  be  a  variety  of  opinion  as  to  the  actual  construction  cost  of  this 
line,  but  if  it  is  not  m  excess  of  the  above  figures  it  is  not  so  unduly 
expensive  as  is  usually  stated,  particularly  when  all  the  conditions 
are  considered.  No  accurate  iufoi-mation  was  obtained  concerning 
the  present  capital  obligations  of  these  lines.  ° 

TRAFFIC. 

The  traflac  on  the  Chinese  Eastern  Railway  totaled  about  2,121,500 
tons  for  the  year  1915,  of  which  grain  was  the  largest  item,  constitut- 
mg  about  45  per  cent.  Coal  was  next,  constituting  about  8  per 
cent,  and  tea  was  next,  amounting  to  almost  5  per  cent.     There 


im 


RAILWAY  MATEEIALS,  EQUIPMENT,  AND  SUPPLIES. 


was  a  large  increase  of  tonnage  handled  as  compared  with  the  previous 
year,  grain  and  coal  each  increasing  about  50  per  cent  and  tea  about 
100  per  cent. 

OEGANIZATION  AND  OPERATING  METHODS. 

The  organization  is  of  the  typically  bureaucratic  type  in  all  features. 
Methods  of  operation  and  train  running  conform  to  the  station- 
master  method  in  all  its  purity.  There  are  buffet  stations,  averag- 
ing about  25  miles  apart,  where  ample  time  is  allowed  for  refresh- 
•r^ent.  One  memorable  feature  of  Russian  tram  operation,  partic- 
iilarly  m  yard  switching,  is  the  constant  use  of  a  large  resonant 
whistle  to  sound  a  code  of  signals  to  switchmen  who  are  located  on 
the  ground  to  throw  switches  for  the  handling  of  cars.  In  the  yard 
at  Harbin  a  surprisingly  large  number  of  men  are  used  as  ground 
switchmen. 

While  the  writer  made  inquiry  as  to  the  performance  figures  of 
these  lines,  it  was  impossible  to  obtain  data  that  would  satisfactorily 
show  the  facts  and  represent  the  normal  conditions. 

KOADWAY  AND  TRACK. 

The  line  passes  through  a  great  variety  of  country;  therefore  the 
location  and  construction  are  all  the  way  from  "easy"  to  "difficult 
and  expensive."  As  a  whole,  the  line  appears  to  be  reasonably 
well  located  and  the  construction  substantial,  although  the  Southern 
Ussuri  line  shows  to  some  advantage  over  the  Chinese  Eastern 
particularly  in  the  use  of  stone  ballast  on  the  former  as  against 
ledifTereiit  gravel  ballast  on  the  latter.  The  structures  are  all  per- 
manent and  some  of  the  bridges  are  imposing,  especially  the  five- 
span  bridge  over  the  Sungari  River  at  Harbin.  The  tunnels,  of 
which  there  is  a  considerable  number,  are  well  constructed,  partic- 
ularly the  substantial  lining  in  most  of  them. 

All  these  lines  are  of  the  Russian  standard  5-foot  gauge.  There 
18  a  great  variety  of  materials^some  rather  unusual— used  in  the 
track  work,  and  the  writer  was  impressed*  with  the  fact  that  those 
m  charge  seemed  able  to  use  any  kind  of  a  track  device  that  they 
were  able  to  obtam. 

STOCK. 


The  rolling  stock  is  even  more  varied  than  the  track  devices. 
The  recent  equipment  received  from  the  United  States  seems  to  be 
used^  without  any  apparent  difficulties,  with  the  other  mixed  equip- 
ri^eiit,  but  most  of  this  new  American  equipment  was  loaded  at 
Vladivostok  and  sent  to  Russia,  and  it  usually  never  came  back. 
Iherefore,  most  of  this  equipment  that  the  writer  saw  was  in  transit 
on  Its  way  to  Russia.  Most  of  the  rolling  stock  in  use  for  local 
service  was  of  continental  types  and  much  of  it  was  manufactured 
01  the  Russian  shops.  The  locomotives,  as  a  rule,  were  small,  and 
mmiy  of  them  had  an  adjustable  diamond  stack  for  the  burnino'  of 
(■■oal  or  wood.  '^^ 

WORKSHOPS. 

Large  worfahops  are  located  at  Harbin.  These  are  capable  of 
Imndling  all  classes  of  repairs  to  rolling  stock,  as  well  as  a  good  deal 
ol  manufactunng,  if  the  latter  is  desu-ed.  Since  the  beoinnincr  of 
the  war,  a  car  erectmg  or  assembling  shop  has  been  used^'at  vfadi- 


MANCHURIA. 


217 


yostok  for  handling  the  cars  received  from  the  United  States      This 
latter  was  one  of  the  results  of  the  Stephens  Railway  Mission  to 

wrS'dSfi  ^^     T    i^¥-  ^""^'^^  received  were  loaded  on  cars  and 
nauiea  48b  miles  to  Harbin,  where  they  were  assembled. 

OFFICIALS— PURCHASES. 

in  WnJ^'iml^'i^^^^T'"*  t"'*  °^  *^^  principal  officials  in  charge 
^«V  n^n  A'fir  /  ^i^K  ^^^^H"""  ^P  ™''"y  '^^^'^nges  since  that  tbrv, 
ih^J\?j}  T-  "^-'i"  ^^  "i^f^**  ^  ^^"..'^  directory  of  the  officials  of 
these  Imes.  A  similar  condition  prevails  with  respect  to  the  handlinjr 
of  purchases,  although  one  feature  has  developed  during  the  period 
smce  the  beginnuig  of  the  war.     Formerly  purchases  w^re  hand" 

SL  n3w'nf\"'''"*'''^J^*  Petrograd,  but  there  wa^  a  constantly 
growing  practice  of  buying  directly  from  concerns  in  Harbin,  if  the 
needed  articles  could  be  so  secured.  A  number  of  American  con- 
cerns have  branches  m  Harbin,  and  most  of  the  large  J^anese 
concerns,  with  branches  at  Dairen,  also  have  branches"  in  rfS 


If  •  MAPfCHUMIAN  AH O  VLAWVOSTOK  TRAMWAYS* 

'■%Afivii«iyr   Aitfffi,  MfaBtmir  mmAwnMikvo 
IfAilllSrl   AN'U  FUWUn    IliAlllWAlCf. 

As  already  ©xplwE'ed,  botli  llie  Dairon  and  the  Fushun  tramway 
systems  are^owned  and,  operated  hj  the  South  Manchuria  Railway 
C\).  The  m,.ileage  and  ©cuiipment  are  shown  by  the  table  on  page 
195.  Both  th^se  eyatems  are  well  constructs,  maintained,  and 
o|>ere,t'ed,  and  the  greater  part  of  the  'equipment,  particularly  elec- 
trical, is  of  American  manufacture. 

In  addition  to  the  passenger  serrice,  the  Bairen  lines  have  10 
motored  freight  cara  used  for  distributing  freight  from  and  to  the 
steam  raflways  and  wharves  for  the  industries  in  Dairen — particu- 
larly sojra  beans  to  the  oil  mills  and  oil  and  bean  cake  from  these 
mills.  This  service  is  performed  very  expeditiously  and  satisfactorily 
and  proven ta  a  great  deal  of  heavy  'tracking  over  the  paved  streets. 
All  of  the  Dairen  tramway  equipment  is  600  volts  direct  current, 
and  a  very  simple  pantagraph  contact  is  used,  which,  in  turn,  greatly 
simplified  the  overhead  construction.  There  is  a  very  interesting 
83'stem  of  fares  on  the  Dairen  line,  based  on  time  limits.  First-class 
fares  are  5  sen  (2J  cents  gold)  for  a  half-hour  ticket  and  6  sen  (3 
cents  gold)  for  a  oU'C-hour  ticket. 

The  tramways  at  Fushun  are  primarily  for  the  handling  of  coal, 
and  the  passenger  service  is  a  secondary  consideration. 

. 

HI.  U  lkUCi.Il    ntJ.I01!i'    I  KmIH  W  il  1 9» 

The  Mukden  horse  tramway  starts  at  the  railway  station  in  the 
railway  area  and  runs  a  distance  of  a  little  more  than  4  miles,  to  the 
west  gate  of  the  west  wall  of  the  inner  city.  This  distance  is  divided 
into  three  zones,  the  fares  for  the  two  outside  zones  being  3  sen  (1 J  cents 
gold)  and  the  fare  on  the  zone  in  the  outer  city  being  4  sen.  The 
rail  on  this  line  is  a  very  Mght  section  of  T  rail,  and  both  this  rail 
and  the  cars  were  formerly  in  use  on  the  Tokyo  horse  tramways; 
the  cars  were  first  used  on  liorse  tramwa3^s  in  New  York  City  before 
the  days  of  electric  street  railways. 

This"  concern  is  Sino-Japanese —the  Japanese  interest  largely  rep- 
resented by  the  cars  and  materials  furnished  from  Tokyo.  There 
is  very  little  real  capital  invested  in  the  plant,  and  it  is  understood 
tli.it  the  concern  is  not  unduly  prosperous.  The  service  is  not  well 
palroiiized,  as  it  is  neither  expeditious  nor  attractive. 

VMMVOSTOK  TRAMWAYS. 

The  electric  tramirays  in  Vladivostok  at  present  total  about  4 
miles  of  route,  and  about  3|  miles  additional  are  under  construction. 

1 lie  present  lines  were  under  private  ownership  when  the  writer  was 
ill  Vladivostok,  but  the  new  lines  are  being  built  by  the  city  and  the 
general  opinion  prevailed  that  the  sjsiem  would  later  be  taken  over 

218 


MAN'CHUIITA. 


219 


by  the  city.  The  manager  and  engineer  in  August,  1917,  was  H.  C. 
Schriber,  and  the  principal  owners  were  A.  K.  Gromadsky  and  IT.  A. 
Zimmerman.  Current  is  supplied  from  the  city  power  plant.  All  the 
ecjuipment  is  largely  from  German  and  Russian  sources.  Finan- 
cially the  concern  was  in  very  doubtful  condition,  and  much  trouble 
was  being  experienced  with  the  employees  in  the  operation  of  the 
lines. 

TSITSIHAR  (ANGANGKI)  LIGHT  RAILWAY. 

The  Tsitsihar  Light  Railway  connects  the  Chinese  city  of  Tsitsihar, 
capital  of  Heilungkiang,  the  most  northerly  Province  of  Manchuria, 
with  New  Tsitsihar,  a  new  town  on  the  Chinese  Eastern  Railway, 
about  18  miles  distant  in  a  southerly  direction. 

The  Russians,  in  building  the  Chinese  Eastern  Railway,  kept  the 
line  at  this  distance  with  the  idea  of  the  advantage  that  would  accrue 
to  them  in  the  building  of  a  new  town  inside  the  limits  of  the  railway 
zone  over  which  they  claimed  jurisdiction. 

The  line  was  built  entirely  with  provincial  funds  and  has  always 
been  controlled  and  operated  by  the  provincial  authorities.  The 
construction  was  begun  in  September,  1907,  and  surveys  were  estab- 
lished two  years  later.  It  is  stated  that  the  capital  expenditures 
have  exceeded  240,000  taels.     The  track  is  of  meter  gauge. 

This  light  railway  has  at  times  been  brought  into  prominence  by  the 
Chinchow-Aigun  project,  which  is  one  of  the  concessions  that  has 
been  negotiated  for  by  American  interests  in  competition  with  Jap- 
anese and  Russian  interests.  The  last  phase  was  the  signing  of  a 
preliminary  agreement  with  a  Russian  concern  for  the  construction 
of  a  line  from  Harbin  to  Aigiin  on  the  Amur  River,  and  also  a  line 
from  Tsitsihar  that  would  connect  with  the  above  line  at  Mergur, 
which  point  is  about  half  way  from  Harbin  to  Aigun. 

The  contract  for  the  construction  of  this  line  was  given  to  Telge  & 
Schroeter,  of  Tientsin,  who  purchased  all  the  roadway  and  track 
materials  and  rolling  stock  from  Orenstein  &  Koppel,  of  Berlin. 
Mr.  W.  R.  T.  Tuckey,  formerly  of  the  Peking-Mukden  Railway  and 
now  engineer-in-chief  of  the  southern  (British)  section  of  the  Tientsin- 
Pukow  Railway,  was  engineer  in  charge  of  the  construction  of  this  Une. 


Part  5.— PHILIPPINE  ISLANDS. 

L  GENERAL  INFORMATION. 

INTRODUCTION. 

To  cover  the  railway  markets  of  the  Philippine  Islands  so  far  as  the 

present  railways  are  concerned  is  a  somewhat  simple  matter.     The 

need  of  railways  for  the  development  of  the  large  possibilities  of 

these  islands  is  a  much  more  difficult  and  important  subject,  which, 

•  however,  it  is  not  the  purpose  of  this  report  to  consider. 

An  effort  will  be  made  under  the  several  headings  of  ''general  in- 
formation" to  state  very  briefly  some  of  the  salient  features  that 
affect,  more  or  less,  transportation  conditions  now  and  in  the  future. 
An  attempt  will  also  be  made  to  indicate  some  of  the  possible  devel- 
opments of  the  islands,  particularly  with  respect  to  supplying  the 
United  States  with  tropical  products  such  as  hemp,  cocoa,  rubber, 
and  similar  articles  of  which  the  American  people  are  very  largo 
users  but  of  which  they  control  a  very  small  part  of  the  world's 
present  supplies. 

AREA  AND  POPULATION. 

The  islands,  numbering  3,141,  are  located  between  5°  and  22*» 
north  latitude  and  117°  and  127°  east  longitude.  The  area  of  all 
the  islands  totals  115,026  square  miles.  Luzon,  lying  near  the  north, 
and  Mindanao,  lying  near  the  south  of  the  archipelago  approximate 
about  40,000  and  36,000  square  miles,  respectively.  The  nine  next 
largest  islands  ranffe  from  5,000  to  1,000  square  miles  each,  and 
there  are  275  islands  with  an  area  of  less  than  IJ  square  m.iles  each. 
.  To  give  an  idea  of  the  extent  of  these  islands,  it  may  be  said  that 
if  the  most  northerly  island  were  placed  on  Sault  Ste.  Marie,  Mich., 
the  most  southerly  island  would  be  located  near  Birmingham,  Ala., 
the  most  easterly  part  of  Mindanao  would  come  near  Pinehurst,  N.  C, 
and  the  most  southwesterly  island  would  be  in  southeastern  Arkansas. 
Manila  would  come  near  South  Bend,  Ind.,  and  Zamboanga  near 
Chattanooga,  Tenn. 

Prof.  H.  O.  Beyer,  who  has  the  chair  of  anthropology  in  the 
University  of  the  Phihppines,  estimated  the  population  at  about 
9,503,370,  from  data  gathered  in  1915  and  1916.  Of  this  population 
It  IS  estimated  that  less  than  75,000  are  what  might  be  called  for- 
eigners. The  remainder  are  natives,  there  being  more  than  25  dif- 
f{  iViiit  tribes,  of  which  there  are  many  subdivisions.  Of  the  foreigners 
ui)i)ut  two-thirds  are  Cliinese,  and  nearly  one-half  of  the  remainder 
consists  of  other  Asiatics,  mostly  Japanese.  There  are  about  5,000 
Americans  in  the  Philippines  and  nearly  as  many  Spaniards  and 
other  Europeans  of  all  nationalities. 


mi  m  JM 


AILWAY  M ATEEiALS,  EQITIrMEwT,  AlTD  SITPPLTES* 


AGHCULT'UIAL  ANB  PASTOEAL  PKODUCTS. 

Agriculture  in  some  fonn  is  the  principal,  ooeiipatioe  of  tlie  natives, 

fcut  the  methocis  are  mostly  primitive.  It  is  estimated  that  there 
are  more  than  r2,000»000  acres  of  cleared  arable  land,  but  that  only 
about  7,000,000  acres  are  actually  under  cultivation.  The  leadin» 
crops,  in  the  order  of  their  value,  are  rice,  hemp  (abaca),  sugar  can(\ 
coconuts,  corn,  and  tobacco. 

Rice  is  the  cliief  food  of  most  of  the  people  and,  strange  as  it  in  ay 
seem  for  such  a  productive  conntry,  it  is  one  of 'the  large  items  (if 
imports  even  when  crops  are  normal;  more'  than  16,500,000  wortli  of 
rice  was  inii)()rted  in  WIS  and  1916  and  15,390,000  worth  in  1917. 
The  land,  m  a  rule,  is  very  responsive  to  scientific  treatment  and  its 
product ivitf  could  be  .greatly  multiplied  by  modern  methods,  but 
the  native  farmers,  unless  'persistently  led,  are  slow  to  take  advantage 
of  improved  implements  and  practices. 

Plantations  of  rubber  are  being  started,  particularly  on ^ the  island- 
df  Mindanao,  and  are  reported  to  be  jirogressing  very  satisfactorily. 
A  large  part  of  the  entire  area  (especially  on  the  larger  islands)  is  as 
productive  m  any  part  of  the  Tropics  and  under  intensive  modern 
methock  will  give  results  equal  to  'the  best  obtained  in  other  coun- 
tries— comparable  to  those  in  Java,  to  which  the  island  of  Mindanao 
is  in  many  respects  similar. 

Pastoral  products  are  of  minor  importance  and,  although  general 
conditions  are  favorable  "for  stock  raising  in  parts  of  the  islantis,  the 
prevalence  of  destructive  animal  diseases  has  made  this  hazanious  in 
the  paist...  Hardy  animals  like  .goats,  swine,  and  sheep  are  found  in 
considerable  numbers,  but  their  quality  is  inferior,  since  little  or  no 
mt  tent  ion  has  been  paid  to  the  breeding.  The  Indian  cattle  recently 
.introduced  show  a  'strong  resistance  to  the  native  cattle  diseases. 
A  considerable  .amount  of  m,eat  and  dairy  products  is  imported  from 
the  'United  States,,  Australia,  and  New  Zealand. 

.Irvlf 'ISS I  If  I    rMMJil  U  L>  I S. 

The  Bureau  of  Forestry  of  the  PbOippine  government  estimates 
that  40  per  cent  of  the  entire  area  of  tne  islands  is  covered  with 
cogon  grass  (Im'pe^mia  ewltoto), /which  is  useless  for  grazing,  is  a  ^m 
menace,  destroys  the  productivity  of  the  land,  and,  woi-at  of  all,  is  a 
breeding  place  for  the  destructive  locust. 

This  condition  has  been  caused  largely  by  the  abandonment  of  the 
land  after  it  has  been, .used  for  agricultural  purposes,  especially  by 
the  "Caingin  "  system.  The  Bureau  of  Forestry  is  working  to  correct 
this  condition,  but  not  with  partic'ularly  encouraging  results  up  t(» 
the  present  time.  Reforestation  of  some  of  these  areas  is  being  at- 
tem|>ted  in  a  sm^all,  way  'by  sowing  a  tree,  ipit-ipil  (Lenmsna  glaum), 
which,  it  has  been  found,  w:ill.  kill  out  cogon  grass  within  two  years. 
This  tree  has.  proved  the  most  succeasful  of  any  used  thus  far. 

The  40  per ^  cent  mentioned,  with  the  15  per  cent  area  of  cleared 
arable  lands,  leaves  45  per  cent  that  can  be  considered  as  forest  land, 
of  which  it  is  estimated  that  two-thirds  (30  per  cent  of  the  whole 
area)  is  original  forest  land  and  the  remaining  one-third  second- 
growth  timber;  most  of  this  last  is  of  doubtful  value.  The  cutting 
of  timber  is  now  done  under  license  from  and  supervision  of  the 
Bureau  of  Forestry.    The  remaining  forests  contain  some  very  good 


PHILIPPIl^E  ISLANDS. 


223 


timber  and  are  a  very  valuable  asset.  If  properly  handled  they  will 
supply  the  greater  part  of  the  requirements  of  the  islands  and  f urn isii 
considerable  amounts  to  be  exported  for  an  indefinite  number  of 
years.  The  value  of  timber  exported  in  1915  was  $235,275  and  in 
1916  $480,644. 

MINERAL  PROBUCTS. 

ITie  total  mineral  products  are  of  minor  importance.  There  au' 
known  to  be  considerable  deposits  of  coal  and  some  quantity  of  iron, 
but  neither  of  these  have  been  properly  proved  to  determine  their 
quantity  or  quaUty.  A  company  was  organized  early  in  1917  with 
a  capital  of  $25,000,000  (the  Philippine  government  owning  51  per 
cent  of  all  stock  issued)  to  prove  and  develop  the  coal  resources  of  the 
islands.  Mr.  Vicente  Maldriga  is  general  manager  and  Mr.  Hix 
(American)  is  assistant  general  manager  and  chief  engineer.  In  1914 
the  Yidue  of  the  coal  imported  was  $1,749,745;  in  1915,  $1,432,520;  in 
1916,  $1,303,994;  and  in  1917,  $1,.'>38,235.  About  $125,000  worth  of 
this  came  from  the  Ignited  States  in  1914  and  1915,  but  none  in  1916 
or  1917. 

MANUFACTURING. 

Such  manufacturing  as  is  done  might  be  called  native  and  special. 
There  is  very  little  manufacturing,  aside  from  some  special  fines,  that 
can  be  considered  modern,  particularly  as  regards  heavy  industries. 
Both  the  native  and  the  special  industries  generally  recjuire  the 
maximum  of  hand  work  and  uFually  little  machinery  except  some  of 
the  simpler  kinds.  Hat  and  basket  making  are  typical  ot  the  native 
industries,  which  are  largely  household  occupations  and  require 
almost  no  machinery.  Lace  making  and  tobacco  manufacturing  are 
the  two  best  exam))les  of  the  special  industries,  although  there  are 
special  crafts,  such  as  slipper  and  shoe  making,  most  of  which  is  done 
in  small  shops. 

COMMERCE. 

The  trade  of  the  Philippines  consists  largely  in  exporting  the  agri- 
cultural products  above  mentioned,  mostly  in  a  raw  or  semiraw  form, 
and  the  importation  ol  manufactured  goods,  for  which  the  islands  are 
very  largely  dependent  on  the  outside  world.  The  main  volume  of 
the  trade  of  the  islands  is  carried  on  through  a  relatively  small 
number  of  large  commercial  houses,  which  constitute  the  agencies 
through  which  the  handling  of  exports  and  imports  is  carried  on.  It 
is  said  that  90  per  cent  of  the  commercial  activities  of  the  Philippines 
are  in  the  bands  of  the  foreigners,  numbering  less  than  75,000,  as 
already  stated.  A  network  of  small  traders  constitute  the  distribut- 
ing and  collecting  medium  for  the  various  parts  of  the  islands. 

The  Chinese  play  a  very  large  part  in  tne  business  of  the  islands, 
particularly  in  the  sale  to  the  natives  of  manufactured  products, 
such  as  dry  (soft)  goods.  It  is  also  an  interesting  fact  that  the 
Chinese  own  much  of  the  best  property  in  the  business  section  of  the 
city  of  Manila. 

The  following  data,  taken  from  the  annual  reports  of  the  Bureau  of 
Customs  of  the  Philippine  government,  show  that  the  volume  of 


224  BAItWAY  MATERIALS,  BQUIPMENT,  AND  SUPPLI,ES. 

fowign  trtda  is  renJly  very  large,  especially  when  the  small  tradin 

capacity  of  the  average  native  is  considered: 


Of 


Cblatdw  yuan. 


■  111  J  VCF  ■     <»    ifi  It.  M  %  || 

»».  ., 

we 

191(1 

IM2 ,. 

IJ'lti.  ...... 

WH. ....... 

■»15 

il'HX  I  I.  .  w  •  *  . , 


xjiiiJi,  tPiiir  iiniS* 


Erports. 


I1%1W„»» 
24,  (W,  779 
»,'«i0,550 

6l,,»7,901 
53,312,7«:1 
4|i,588,6Sa 
4i,«2,lM 
45,«8,;a8 
«,7«i,IW 


tl4,!M,5S2 
22,  M,  373 
.3Ji,454',774 

54,923,300 
47,772,TO:i 
I8,IW9,634 
a,8U,0(M 
W,«7,183 
!K,»4,307 


Total  trade. 


'134,039,568 

47, 854, 152 

63,305,324 

90,347,824 

liti,59l,2()l 

101,(W.S.742 

97,278,287 

103,123,188 

lis,  41:3,,  S21 

101,451,133 


In  favor  of 
islands. 


Acaiiist 
islands. 


S3, 404, 224 


100,981 

4,.5O0,S20 
24,440,845 
29,857,481 


f  4, 34  J,  4)1 

ti,74l,<Wl 
5,539,S.'JU 


■PBRCENTAOBS  O'F  TRADE  WITH  BPECIFIED  COUNTRIES. 


Imports. 

_____ : , '-US 

Exports. 

ConntriM. 

1913 

1914 

1915 

1916 

1913 

1914 

1915 

1916 

Tnitfd  States „ 

IJiiit.ed  Kingdooi. . .. 

Japan 

F  rencli  Indo-C'hina. . . 

Per  .emi, 

50' 

10 

« 

S 

Pit  «»£, 

• 
7 

T 

Per  eeni. 

53 
7 
8 

111 

Per  cent,, 

m 

e 

11 

14 
6 
2 

Per  emit. 

'35 

19 

8 

Per  cent. 
50 

15 
6 

Per  cent. 
44 
17 

7 

PercetU. 
51 
18 
7 

China  and  Ifongkong. 
Australia ,. 

5 
5 

i 
5 

5 

3 

1 

6 

1 
2 

** 9* 

1 

9 

1 

Crermany 

6 

5 

4 

•.>!.!r^«!F^  *^  ^^^!  mcksive,  the  balance  of  trade  averaged  about 
W,000,000  a  year  against  the  islands,  but  from  1905  to  1909,  inclusive 
It  averaged  newly  $4,000,000  a  year  in  favor  of  the  islands.  The 
period  '^7^^1899  to  1915  gave  an  aggregate  balance  against  the 
islands  of  118,810,591,  but  the  years  1916  and  1917  have  changed 
this  t€>  a  balance  in  favor  of  the  islands  amounting  to  $35,487,735. 

At  this  point  it  seems  proper  to  correct  the  verj^  general  misunder- 
staQding^coKermng  the  financial  situation  between  the  United  States 
and  the  Phihppme  Islands.  The  only  expenses  that  have  been  borne 
by  the  United  States  are  those  of  the  military  and  naval  estabhsh- 
nients;  the  civil  government  expenses  and  all  the  insular  improve- 
ments have  been  paid  for  from  the  revenues  of  the  Pliilippine  govern- 
men  i* 

From  the  above  table  it  will  be  seen  that  more  than  50  per  cent  of 
the  imports  came  from  the  United  States  for  the  four  years  shown 
Imports  from  ai  other  countries  are  charged  considerable  duties 
while  those  from  the  United  States  enter  Iree.    This  is  a  very  im- 
portant^ act  vantage.    At  present,  with  the  scarcity  of  shipping  and 
the  high  freight  rates,  Japan  is  enjoying  an  opportunity  of  which  it 
IS  takmg  advantage,  as  is  shown  by  its  constantly  increasing  share  of 
tlie  business.     One  reason  for  Japan's  advance  in  this  trade  is  to  be 
found  in  the  adaptability  of  many  of  its  products  to  the  requkements 
of  the  islands.    Rice,  largely  from  French  Indo-€hina,  and  u-on  and 
steel  products,  mcludmg  machine£y,  are  the  next  largest  items  of 
imDortation  after  cotton  goods.    The  iron  and  steel  products  are  of 
wide  variety,  and  the  proportion  from  the  United  States  has  averaged 
nearly  75  per  cent  for  a  period  of  years  past.     The  value  of  the  u-on 
steel,  and  machinery  imports  for  five  recent  years  has  been  as  follows  • 


PfilLIPPINB  ISLAT7D8. 


225 


1913,  $8,613,904;  1914,  $6,983,444;  1915,  $4,430,071;  1916,  $3,763,239; 
and  1917,  $5,927,563.  Other  imports,  in  the  order  of  their  value,  are: 
Chemicals,  drugs  and  medicines,  coal,  food  products,  leather  goods, 
oils,  and  silks. 

Hemp  is  much  the  most  important  export.  About  50  per  cent  of 
this  goes  to  the  United  States  and  the  next  largest  amount  to  the 
United  Kingdom,  with  Japan  third.  The  value  of  the  exports  for 
five  recent  years  has  been  as  follows:  1913,  $21,686,785:  1914  $19- 
765,602;  1915,  $21,644,847;  1916,  $27,224,955;  and  1917,  $47,787,860. 

hugar  IS  the  article  next  in  importance.  More  than  50  per  cent  of 
the  exports  usually  go  to  the  United  States.  The  value  of  the  sugar 
exports  for  five  recent  years  has  been  as  follows:  1913,  $7,032  889- 

l?i1{il^4P'^^^^  ^^^^'  $11,310,215;  1916,  $18,587,593;  and  1917! 
$12,277,679, 

Copra  and  coconut  products  are  third  in  value,  and  again  about 
50  per  cent  of  the  exports  go  to  the  United  States. 

Tobacco  products  are  fourth  in  value,  and  here  again  the  United 
btates  takes  about  50  per  cent. 

Other  exports,  in  the  order  of  then*  value,  are  maguey,  embroideries 
and  hats,  lumber,  and  cordage. 

PORTS  AND  TRADE  CE^ITERS. 

ManOa  is  the  seat  of  the  Philippine  government  and  in  every  way 
IS  the  most  important  port  and  trade  and  manufacturing  center.  It 
is^located  in  the  southern  part  of  the  island  of  Luzon,  somewhat  north 
of  the  center  of  the  archipelago,  being  accessible  from  all  parts  of  the 
islands.  In  an  an-  line,  it  is  about  500  miles  from  Hongkong,  1  200 
miles  from  Shanghai,  1,600  mUes  from  Kobe,  1,800  miles  from  Yoko- 
hama, and  a  htfcle  more  than  6,000  miles  from  San  Francisco.  Via 
the  Panama  Canal  it  is  about  11,500  miles  from  New  York  and  about 
14,000  miles  from  Liverpool. 

,  While  Manila  is  not  the  only  port  of  entry,  it  is  much  the  most 
important,  particularly  for  imports.  The  mier  harbor  is  protected 
by  a  breakwater,  mside  which  vessels  handle  cargo  by  lighters-  this 
is  done  with  much  of  the  cargo  gomg  to  the  Pasig  River  and  its  con- 
necting cunals.  There  are  also  five  modern  piers  at  which  the  largest 
vessels  plymg  the  Pacific  can  dock.  There  are  several  large  modern 
warehouses  near  these  docks.  In  fact,  the  port  of  Manila  is  excellent 
in  every  respect  and  capable  of  handhng  an  immense  volume  of 
business. 

The  most  important  of  the  other  ports  are  Iloilfe,  Cebu,  and  Zam- 
boanga,  m  the  order  named.    All  are  south  of  Manila. 

Much  has  been  said  in  regard  to  makmg  Manila  a  ''free  port," 
and  there  is  much  to  commend  this  plan. 

COASTAL  SHIPPING. 

While  some  over-sea  staple  cargo  is  shipped  from  the  ports  of  Hoilo, 
tjebu,'  and  Zamboanga,  the  great  bulk  of  all  over-sea  shipments  goes 
through  the  port  of  Manila.  Coastwise  shippmg  is  the  interisland 
transportation  problem  of  greatest  importance.  The  very  long  coast 
line  of  the  islands  and  their  natural  conformation  make  it  practicable 

10622»''~19 15 


226 


RAILWAY  MATEraALS,  EQUIPMENT,  AlTD  STTPPLIE3. 


to  have  the  great  number  of  harbors,  mostly  smaU,  that  now  exist 
and  the  numfo  of  which  wUl  increase  as  the  business  grows.  How- 
ever there  wiU  have  to  be  connected  with  this  coastwise  shinpin.- 
(par  icularly  as  the  development  of  the  islands  proceeds)  a  system  o? 
?ramw«*v^  '^f^T^'^'  '^^l^^  Y^t^  shp'Jd  be  similar  to  the -so-called 
F™^.  *"  ^  *  ^'"^^"y^  «^  J^Pan.  (Chosen,  and 

There  are  a  number  of  different  concerns  engaged  in  this  coastal 
shipping  Some  of  the  rurus  start  at  Hongkong  making  Manila  the 
main  port  of  caU,  while  there  are  other  linSs  that  make  the  run  fro ni 
Manda.  The  amount  of  this  shipping  will  have  to  be  substantiallv 
mcreasod  as  the  development  of  tlie  iSands  proceeds.     ™'**'"""'"-^ 

GENERAL  RARWAY  SITUATION. 

At  presentthe  railway  facilities  of  the  islands  are  limited,  to  say 
the  least.  The  Manda  Railroad  Co.  (Ltd.),  now  controlled  «nd 
onerate*!  l.v  t.hA  Phili,...;^-.  ^„„ .    VlJ'Jl?^    controued   and 


loiai  01  /id., J  miles,  ail  of  3 -foot  6-inm  craiiiyA  #»nTnnria«a  oil  fi^y*  «^^ 

merel^rmlw^s  nw  m  service  ioTh'S^ 
tJiaii  100  miles  under  eonsfcnictioo.  The  Manila  Eleetril  Railway^ 
LiglUmg  Corporatiofl  has  a  total  of  45.1  miles  of  street  railwa%^  and 
iiiterurbaii  lines  in  and  ■around  the  city  of  Manila.  This  is  the  onlv 
sjTstem  of  electnc  railwa^^s  of  any  kind  in  the  islands.  '  The'  only 
^!!^^i  tmMl^rtatipn  concern  of  any  ma-nitude  whatever  is  thi 
Benguet  Automobile  Lme,  running  a  line  of  large  motor  buses  from 

jf^tf  !f:t*"^^^  RailroJ  ^1  *;^c^  ai^nt^Jf  S 

good  roads  has  been  built  m  several  parts  of  the  islands  While 
these  are  very  valuiible,  it  is  doubtful  whether  thev  will  provide  the 
tninsportatiim  needed  to  develop  to  best  advantage  the  heavy  aeri! 
^'"t'll^r^  especially  liemp,  sugar,  and  coc^ut  products.^ 

the  de?&Zmenf  of%h^^^^^^  to  be  Considered  in 

r^;.!K^«  •  ^  4  r  ^M^PB"®  Islands  is  the  adoption  of  a  com- 
prehensive system  of  mam  railways  for  the  larger  islands.  suDDle- 

mented^by  Wht  railways.    It  woiSd  admittedly^be  much  bettor  to 

Have  this  development  carried  out   under  a  well  considered   and 

I^!!*r^^^^^^^^^^    progimm,  instead  of  l>y  the  haphazard,  piecemeal  con- 

struction  that  will  otherm^ise  result. 


n.  MANILA  RAILROAD  CO.  (LTD.). 

LOCATION  AND  EXTENSIONS, 

The  Manila  Railroad  Co.'s  system  of  railways  is  located  in  the 
central,  western,  southern,  and  southeastern  portions  of  the  island  of 
Luzon.  The  main  terminal  is  at  Manila.  The  part  lying  north  of 
Manila  is  known  as  the  Northern  Lines;  the  mam  line  runs  a  little 
west  of  north  from  Manila  through  Dagupan  to  San  Fernando,  a  dis- 
tance of  158.2  miles,  and,  in  addition,  there  are  148.5  miles  of  branches, 
making  a  total  of  306.7  miles  of  railway  in  the  Northern  Lines.  The 
part  lying  southeast  of  Manila  is  known  as  the  Southern  Lines;  the 
mam  line  runs  from  Manila  to  Calanay,  a  distance  of  117  miles,  and 
there  are  149.9  miles  of  branches,  making  a  total  of  266.9  miles  of 
railway  in  the  Southern  Lines.  The  total  for  the  system  is  573.6 
miles  of  route,  all  of  3-foot  6-inch  gauge. 

The  extensions  under  construction  are  almost  entirely  additions  to 
the  Southern  Lines,  which  will  be  extended  to  the  most  southerly  part 
of  the  island  of  Luzon. 

The  Manila  Railroad  Co.  (of  New  Jersey)  controls  the  Manila  Navi- 
gation &  Transportation  Co.,  but  no  further  mention  will  be  made  of 
this  concern,  since  its  operations  are  conducted  separately  from  those 
Of  the  railway. 

PRESENT  OWNERSHIP  AND  CONTROL. 

After  extended  negotiations  the  control  of  those  lines  was  taken 
over  by  the  Philippine  government  January  1,  1917,  by  the  purchase 
of  all  the  outstandmg  common  and  preferred  stock  andi  the  guaranty 
of  the  outstanding  bonds.  The  status  of  the  corporation  was  re- 
tained, and  the  operation  of  the  lines  was  continued,  with  only  a 
change  m  the  board  of  directors  and  the  principal  executive  officers. 
This  arrangement  was  continued  until  January  1,  1918,  when  further 
changes  were  made— the  president  of  the  Phihppine  Upper  House 
(Senate)  also  becoming  president  of  the  railway  and  the  director  of 
the  Bureau  of  Pubhc  Works  assuming  the  duties  of  general  manager 
of  the  railway.  This,  in  a  way,  merges  the  administration  of  the 
railway  with  the  Bureau  of  Public  Works,  but  the  corporation  status 
of  the  railway  is  still  retained. 

HISTORICAL  SURVEY. 

The  Manila  Railroad  Co.  (Ltd.)  was  registered  December  13,  1906, 
uiuler  the  English  laws  as  a  successor  to  the  original  Manila  Railway 
»-o.,  which  was  incorporated  January  25,  1888,  to  take  over  a  con- 
cession from  the  Spanish  Government  for  a  line  of  122  miles  for  a 
term  of  99  years  to  run  from  April,  1887.  The  new  company  was 
incorporated  as  an  outcome  of  the  negotiations  with  the  United 

227 


H 


)! 


J 


20Q' 


lAILWAY  MATElIAIiS,  IQIflPMEKT,  AMD  SUPPUIS. 


StE'tes  to  obtain  a  setflenient  of  the  miway's  claims  against  the  Gov- 
ernment anamg  out  of  the  developments  in  the  Philippine  Islands 
from  1897  to  1899.    In-addition,  there  was  formed  the  Manila  Rail- 
road Co.  (of  New  Jersey),  which  took  over  all  the  properties  of  the 
original  Manila  Railway  Co.  (English)  and  was  granted  a  perpetual 
concession .    This  company  which  took  the  place  of  the  old  English 
compan)-^  holding  the  concessions  from  the  Spanish  Government  was 
organized  m  1906  under  the  laws  of  the  State  of  New  Jersey  and  holds 
subject  to  the  terms  of  concessionary  grants  or  contracts,  concessions 
for  approx,imately  350  miles  of  lines^  designated  as  the  Northern 
Lines  and  approximately  470  miles  of  line  called  the  Southern  Lines. 
riiese  lines,  totahng  about  820  miles,  were  all  to  he  on  the  island  of 
Luzon  and  to  the  north  and  south  (southeast)  of  Manila.    One  very 
specihc  requirement  of  the  concessions  was  that. the  two  systems 
were  to  be  kept  separate  and  distinct  and  to  be  constructed,*^  main- 
tained, and  opemted  and  their  books  and  acta  kept  as, if  the  lines 
were  owned  by  separate  and  distinct  companies,    flie  two  systems 
were  to  have  (and  do  have)  a  common  terminus  in  Manila  and  to 
mjov  ©very  facility  for  free  exchange  of  traffic,  including  a  port  line 
in  Manila,  connecting  with  the  water  front  wharves  and  warehouses, 
which  was.  constructed  by  the  government 

The  concessions  provided  that  there  should  be  paid  annually  for  a 
period  of  m  years  an  amount  equal  to  0.5  per  c^nt  and  for  50  years 
thereafter  an  amount  equal  to  1.5  per  cent  of  the  gross  earnings  of  the 
company  m  lieu  of  all  Uxm  of  every  name  and  nature  on  the  fran- 
chises, earnings,  and  all  other  property  owned  or  operated  by  the 
company  under  its  con^ceseions.  The  concession  also  had  the  very 
important  provision  that  all  materials  and  equipment  imported  for 
tlie  company's  lines  should  be  admitted  free  of  duty. 

CAPITAL  OBLIGATIONS. 

Of  the  authorized  $3,500,000  common  stock  and  16,500,000  pre- 
ferred 7  per  cent  stock  for  the  Northern  Lines,  there  was  outstanding 
previous  to  the  nurehase  by  the  Philippine  government,  f2,130,7(§) 
of  the  former  and  13,652,800  of  the  latter—a  total  of  $5,783,500.  Of 
the  authorized  $7,500,000  first  mortgage  6  per  cent  gold  bonds  and 
the  $12,500,000  second  mortgage  7  per  cent  gold  bonds  for  the  North- 
ern Lines,  each  issue  matunng  in  1956,  there  was  outstanding,  pre- 
vious to  the  purchase  by  the  government,  $4,330,000  of  the  former 
and  $7,716,000  of  the  latter— a  total  of  $12,046,000. 

For  the  Southern  Lines  there  was  no  stock  outstanding,  and  of  the 
authorized  $30,000,000  first  mortgage  4  per  cent  gold  bonds  there 
was  outstanding  $10,575,000.  The  maturity  of  thra  issue  of  bonds 
was  extended  from  1839  to  1859  when  the  control  was  taken  over  by 
tlie  government.  The  outstanding  bonds  for  the  system  totaled 
$22,621,000,  or  more  than  $39,000  per  mile  of  line  in  service,  although 
this  includes  some  of  the  expenses  already  incurred  on  the  less  than 
100  miles  of  additional  line  under  construction  at  that  time. 

In  the  balance  sheets  for  December  31,  1915,  tlie  Northern  Lines 
of  the  operating  company,  the  Manila  Kaikoad  Co.  (of  New  Jersey) 
showed  a  liabilitv  of  $3,946,441  to  the  holding  company,  the  Manila 
ICailroad  Co.  (Ltd.),  this  being  a  result  of  the  accrued  annual  deficits. 
The  Southern  Lines  showed  a  liability  of  $2,838,500  due  the  Philip- 


PHILIPPINB  ISLANDS. 


"Z"Z«F 


nine  government  for  advances  to  meet  the  annual  deficits  and  a  lia- 
bility of  $3,284,918  of  this  character  for  the  Southern  Lines,  resulting 
in  a  total  of  $7,230,609  for  the  system,  which  can  be  termed  accu- 
mulated deficit, 

INVESTMENT  ASSETS. 

Tlie  cost  of  road  and  equipment  and  the  general  expenses  on 
December  31,  1915,  are  shown  bv  the  following  table  for  the  Northern 
and  Southern  Lines  and  for  the  system  as  a  whole;  these  figures 
substantially  represent  the  property  at  the  time  it  was  taken  over 
by  the  government: 


Items. 


Cost  of  road 

Cost  of  equipment. 
General  expenses . . 


Tot2.1  investment  assets 


Northern 
Lines. 


SI  4, 698, 634 

1,389,818 
1,010,197 


17,098,649 


Southern 
Lines. 


f7, 416, 302 
2,078,988 
2,183,928 


11,679,218 


Total. 


$22,114,938 

3,4t»S,S(Jfi 
3,194,125 


28,777,867 


This  represents  a  cost  of,  $55,685  per  mile  for  the  Northern  Lines 
and  $43,825  for  the  Southern  Lines,  or  an  average  of  almost  exactly 
150,000  a  mile  for  the  system.  When  one  considers  the  3-foot  64nch 
gauge  and  the  small  amount  of  rolling  stock  this  seems  to  represent  a 
rather  high  investment. 

TRAFFIC. 

For  the  year  ended  December  31,  1915,  the  last  year  for  which 
figures  were  available  when  the  writer  was  in  Manila  in  April  and  May 
1917,  the  earnings  for  the  Northern  Lines  were  64  per  cent  from  pas- 
senger and  36  per  cent  from  freight  business.  On  the  Southern  Lines 
the  division  was  66  and  34,  making  practically  65  and  35  for  the  sys- 
tem as  a  whole. 

Passengers  are  carried  first,  second,  and  third  class  on  all  the  lines. 
On  the  Northern  Lines,  in  1915,  1  per  cent  of  the  passengers  rode 
first  class,  1 . 1  per  cent  second  class,  and  97.9  per  cent  third  class.  The 
earnings  were  about  5  per  cent  from  first  class,  4  per  cent  from  second 
class,  and  91  per  cent  from  third  class.  The  average  ride  for  all  pas- 
sengers was  19.24  miles,  and  the  average  earnings  from  all  passengers 
were  1 .65  cents  per  mile.  A  total  of  2,357,341  passengers  were  carried 
during  the  year.  On  the  Southern  Lines,  of  the  2,031,651  passengers 
carried,  0.7  per  cent  were  first  class,  0.9  per  cent  second  class,  and 
98.4  per  cent  third  class.  The  average  ride  was  16.72  miles,  and  the 
average  earnings  per  passenger  mile  were  1.62  cents.  The  earnings 
for  the  Southern  Lmes  were  not  shov^ii  by  classes. 

The  first-class  fares  average  about  3  cents  a  mile,  the  third-class 
fares  a  little  more  than  50  per  cent  of  the  firet-class  fares,  and  the 
second-class  over  75  per  cent  of  the  first  class.  One  hundred  and  ten 
pounds,  88  pounds,  and  66  pounds  of  baggage  are  carried  free  for  the 
respective  classes.  The  larger  number  of  first  and  second  class  pas- 
sengers, the  longer  ride,  and  the  higher  average  of  earnings  per  pas- 
senger mile  on  the  Northern  Lines  are  almost  entirely  the  result  oith© 
special  travel  to  Baguio. 


RAILWAY  MATERIAM,  EQITIPMEKT,,  AKD  SUPPL:IES. 

'^i*J''^"f  T^'*^®™  ^^^^'  during  the  jeM  1915, 438,369  tons  (of  2,000 
pounds)  of  freight  were  movei,  from  which  the  total  revenue  was 
$465,323.  The  average  haul  was.  56.1  milw,  and  the  average  earnings 
per  ton-inile  were  1.114  cents.  Agricultural  products  constituted  58 
per  cent,  mLanufactured  products  9.5  per  cent,  and  forest  products  5 
per  cent.     Materials  for  tlie  government  amounted  to  18.4  per  cent. 

1  he  houthcrn  Lmes  handled  305,801  short  tons.  Tlie  avcrao-e  hjiul 
was  39.9  miles,  and  the  average  earnings  were  1.536  cents  per  toii- 
mile.  Agricultural  products  constituted  64.3  per  cent,  forestry  prod- 
ucts more  than  14  per  cent,  and  manufactured  products  12.5  per  cent. 
Animal  products  form  about  4  per  cent  on  all  lines. 

WOIKIMG  RESULTS  AND  LOSS. 

The  following  tahle  shows  the  financial  results  for  the  year  1915  the 

most  recent  figures  available  when  the  writer  w^as  in  Manila :         ' 


Items. 

Nortlient 
Lines. 

Southern 
Lines. 

Total. 

Cross  odrporate  revenw 

11,400,225 

It,  cm,  689 

•2,463,914 

■Opfntinfiiitw-. , per^crait.. 

m.2 

7L7 

65.0 

O'pumtlinf  8XWSIMW 

Taios, •* • ■ ■• 

mo.im 

1864,781 
6,425 

11, 455, 484 
15,702 

Total 

7M,M0 

671,206 

1,471,188 

Cross  corporate  Inooinffl., 

«00, 245 

392,483 

' — — 

Interesi  cluyrges... . ., 

Other  mwmeehar|*os...,..,,..II"IIII*l*I*^'*^]^^**"*''^';]; 

To^tal , 

Lous....... ,..„ 

992,  728 

M1,M7 
5,600 

'Mt,8K 
37,298 

1,351,522 
42,988 

817,357 

587,153 

1,404,510 

217, 112 

194,  «0           ill,  781 

For  the  year  1917,  the  first  year  under  government  operation,  the 
press  reports  state  that  the  loss  was  converted  into  a  profit  of  about 
§400,000.    During  that  year  a  coiisiderablv  increased  volume  waa 

also  reported.  "  •       •       ^ 

OPEKATING  METHODa 

Train-ruiiuing  methods  conform  strictlv  to  the  British  "station- 

Bi„astor  '  svstem,  referred  to  at  lengt-h  in '"the  Ohintee  and  Japanese 
sections,  of  tks  ronort.  The  small  amount  of  signaling  is  along  the 
lines  of  the  Britisli  Board  of  Trade  practice  .and  as  simple  as  it'  is 
pwsible  to  make  this  system  of  signaling.  With  the  class  of  emplo  vees 
available,  consisting  almost  entirelr  of  natives  in  the  tram  and 
station  service,  there  is  little  doubt  that  this  is  the  best  method  of 
operation,  and  government  operation  will  be  an  added  reason  for 
continuing'  this  arrangement. 

:VifHOf EES  AND  WAGE&. 

Th,e  folowiiig  t.able  shoirs  the  number  of  general  officers  and  all 
other  employees,  the  number  of  days  worked,  the  total  yearly  com- 


PHILIPPINE  ISLANDS. 


231 


ppnsation,  the  average  daily  compensation,  and  the  average  yearly 
compensation;  the  figures  are  for  the  year  1915: 


Classes  of  employees. 

Number. 

Total 

days 

worked. 

Total 
yearly 
compen- 
sation. 

Average 

daily 
compen- 
sation. 

Average 
yearly 

compen- 
sation. 

NORTHERN  LfflES. 

General  officers 

A 1 1  others 

6 

2,768 

2,122 

963,93^1 

$40,500 
512,082 

$19. 086 
.531 

$(i,  750.  Of) 
1H.=>.  (' ) 

SOUTHERN  LINES. 

( !  eneral  officers 

9 
2,583 

2,845 
533.483 

8,587 
254,018 

3.018 
.476 

954  11 

All  others 

98  34 

Total  of  "all  others" 

5,351   t  4m  41Q 

766  100  1            -'^11 

142  38 

_,  — . ,  --_ 

The  average  daily  wages  of  the  employees  classified  as  ''all  other" 
and  the  yearly  wages  for  this  class  on  the  Northern  Lines  give  the 
best  idea  of  the  wage  situation.  It  will  be  noticed  that  the  employees 
on  the  Northern  lines  worked  nearly  350  days  during  the  year, 
while  on  the  Southern  Lines  they  worked  less*  than  207  days*.  Iti 
will  also  be  noticed  that  the  wages  on  this  system  are  considerably 
higher  than  the  average  on  the  railways  in  China,  Japan,  Chosen, 
and  Manchuria,  as  shown  by  the  other  sections  of  this  report. 

ROADWAY  AND  TRACK. 

On  account  of  the  large  number  of  openings  required  to  take  care 
of  the  excessive  rain  that  fails  at  times,  and  the  difficulty  of  getting 
across  marshy  ground  (which  occurs  frequently),  location  and  con- 
struction are  rather  troublesome  and  expensive^ 

On  December  31,  1915,  on  the  Northern  Lines  there  were  902 
bridges,  averaging  42.5  feet  in  length,  of  which  517  were  wooden  or 
combination  structures;  many  of  these  were  approaching  the  time 
when  they  would  need  to  be  renewed  and  when  it  would  be  desirable 
to  replace  them  with  permanent  structures.  On  the  Southern  Lines 
there  were  428  bridges,  averaging  58  feet,  of  which  244  were  wooden 
stnictures.  On  the  Northern  Lmes  the  permissible  maximum  axle 
load  is  29,120  pounds  and  on  the  Southern  Lines  31,600  pounds.  In 
addition,  there  are  582  culverts  on  the  Northern  Lines  and  1,374  on 
the  Southern  Lines,  showing  the  great  number  of  openings  required. 

Most  of  the  rail  in  all  tracks  is  60-pound,  and  the  fastenings,  frogs, 
switches,  and  other  track  appliances  are  all  along  the  lines  of  British 
practice  in  China.  Most  of  the  crossties  are  now  of  native  timbers. 
These  cost  10.955  in  1915  on  both  the  Northern  and  Southern  Lines. 
Bridge  ties  cost  $1.82  on  the  Southern  Lines,  where  there  are  a 
number  of  lumbering  operations,  and  $2.93  on  the  Northern  Lines, 
part  of  whose  ties  came  from  the  northwestern  United  States  or 
western  Canada. 

The  track  is  fairly  well  ballasted  with  various  materiab,  from 
engine  cinders  to  gravel,  with  dome  broken  rock. 


BAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


LOCOMOTIVES. 

There  are  69  locomotives  on  the  Northern  Lines,  ranging  in  weight 
(exclusive  of  tender)  from  31,400  pounds  to  130,000  pounds  and  from 
type  00  to  oOOoo  and  oOOO-OOOo— the  latter  intended  for  use 
on  the  Baguio  line.  On  the  Southern  Lines  there  are  39  locomo- 
tives, ranging  in  weight  (exclusive  of  tender)  from  43,700  pounds  to 
130,000  pounds  and  from  type  000  to  oOOOoo.  The  00-type 
locomotives  have  now  been  m  service  about  30  years,  and  not  only 
these  but  all  other  locomotives  ever  purchased  are  still  in  service. 
This  condition  is  in  accordance  with  the  general  practice  of  the  Far 
East  to  get  a  very  long  life  out  of  all  rolling  stock. 

Considerable  numbers  of  the  locomotives  are  superheated;  on 
those  the  Wakefield  superheater  lubricator  is  used.  The  Detroit 
lubricatoF  is  generally  used  for  saturated  steam.  The  Dreadnaught 
vacuum  injector  is  used  on  all  locomotives,  as  all  power  brakes  are  of 
vacuum,  type. 

All  locomotives  are  of  British  construction,  except  a  relatively 
smai  number  that  were  furnished  from  the  United  States  but  were 
built  largely  to  conform  to  British  specifications  and  practice.  It 
has  been  the  practice  to  use  noncorrosive  materials  for  fire-box  con- 
struction, but  a  change  was  being  made  to  iron  when  the  writer  was 
ill  Manila.  There  is  a  good  deal  of  corrosive  water  on  the  lines,  and 
some  use  had  been  made  of  boiler  compounds,  but  it  was  stated  that 
results  had  not  been  satisfactory,  particularly  in  the  superheated 
locomotives,  where  deterioration  of  the  noncorrosive  materials  had 
occurred. 

During  1915  the  fuel  for  locomotive  use  cost  $5.78  per  short  ton. 
This  cost  was  substantially  increased  in  1916  and  again  increased  in 
1917,  but  the  detailed  figures  were  not  available  when  the  writer 
was  m  Jji.aniia. 

Figure  39  shows  the  locomotive  drawing  the  Baguio  Special  the 
weight  of  which  (exclusive  of  tender)  is  93,200  pounds,  with  a  tractive 
effOTt  of  15,600  pounds.  This  picture  shows  the  type  of  coupler, 
buffer,  and  vacuum  hose  connection  and  also  something  unusual  in 
British  Dractice — a  bell  on  the  locomotive. 

The  following  table  shows  the  amount  and  classification  of  the 
rolling  stock  of  the  Manila  Railroad  Co. : 


Special  Agents  Series  No.  180. 


Rolling  stoclc. 


.iOCOMOTIVES. 

Class  Al,  00 

ClassAS,  OOO. 

ClaasAI,  0000 

Clisa  Bl,  OOOOo 

Claai  C3,  OOOoo '. 

Cites  D3,oO00 

Class  M,  oOOo ■■  

Class  F2,  oOOoo. '..*. 

Class  F3,  oOOOo 

Mif er  special,  oOOO-OOOo '..'.'.I'.'.'. '. I .' .' * 

Total.... , ,.., 


Northern 
Lines. 


Southern 
Lines. 


Total. 


69 


i 

0 

7 

7 

0 

3 

0 

5 

S 

8 

» 

11 

18 

0 

fi 

0 

0 

6 

S 

0 

5 

14 

3 

i 

a 

40 

15 

6 

6 

3 


FIG.  39.— LOCOMOTIVE  DRAWING  BAGUIO  SPECIAL.   PHILIPPINE  ISLANDS. 


106 


FIG.  40.— BAGUIO  SPECIAL  LEAVING  STATION. 


INTENTIONAL  SECOND  EXPOSURE 


232 


RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 

LOCOMOTIVES. 


There  are  69  locomotives  on  the  Northern  Lines,  ranging  in  weight 
(exclusive  of  tender)  from  3 1,400  pounds  to  130,000  pounds  and  from 
type  00  to  oOOoo  and  oOOO-OOOo— the  latter  intended  for  use 
on  the  Baguio  line.  On  the  Southern  Lines  there  are  39  locomo- 
tives, ranging  in  weight  (exclusive  of  tender)  from  43,700  pounds  to 
130,000  pounds  and  from  type  000  to  oOOOoo.  The  00- type 
locomotives  have  now  been  in  service  about  30  years,  and  not  only 
these  but  all  other  locomotives  ever  purchased  are  still  in  service. 
This  condition  is  in  accordance  with  the  general  practice  of  the  Far 
East  to  get  a  very  long  life  out  of  all  rolling  stock. 

Considerable  numbers  of  the  locomotives  are  superheated;  on 
these  the  Wakefield  superheater  lubricator  is  used.  The  Detroit 
lubricator  is  generally  used  for  saturated  steam.  The  Dreadnaught 
vacuum  injector  is  used  on  all  locomotives,  as  all  power  brakes  are  of 
vacuum  type. 

All  locomotives  are  of  British  construction,  except  a  relatively 
small  number  that  were  furnished  from  the  United  States  but  were 
built  largely  to  conform  to  British  specifications  and  practice.  It 
has  been  the  practice  to  use  noncorrosive  materials  for  fire-box  con- 
struction, but  a  change  was  being  made  to  iron  when  the  writer  was 
in  Manila.  There  is  a  good  deal  of  corrosive  water  on  the  lines,  and 
some  use  had  been  made  of  boiler  compounds,  but  it  was  stated  that 
results  had  not  been  satisfactory,  particularly  in  the  superheated 
locomotives,  where  deterioration  of  the  noncorrosive  materials  had 
occurred. 

During  1915  the  fuel  for  locomotive  use  cost  $5.78  per  short  ton. 
This  cost  was  substantially  increased  in  1916  and  again  increased  in 
1917,  but  the  detailed  figures  were  not  available  when  the  writer 
was  in  Manila. 

Figure  39  shows  the  locomotive  drawing  the  Baguio  Special,  the 
weight  of  which  (exclusive  of  tender)  is  93,200  pounds,  with  a  tractive 
effort  of  15,600  pounds.  This  picture  shows  the  type  of  coupler, 
buffer,  and  vacuum  hose  connection  and  also  something  unusual  in 
British  practice— a  bell  on  the  locomotive. 

The  following  table  shows  the  amount  and  classification  of  the 
rolling  stock  of  the  Manila  Railroad  Co. : 


Rolling  stock. 


Northern 
Lines. 


LOCOMOTIVES. 

Class  A2,  OO , 

Class  AS,  000 

Class  A4,  OOOO [ 

Class  B4,  OOOOo 

Classes,  OOOoo.... l,l["V 

Class  D3,  oOOO 

Class  E2,  oOOo 

Class  F2,  oOOoo l'"' 

Class  F3,  OOOOo .".  ".' 

Meyer  special,  oOOO-OOOo 

Total 


Southern 
Lines. 


5 
7 
0 
0 
5 
29 
15 
5 
0 
3 


Total. 


0 
7 
3 
5 
8 
11 
0 
0 
S 
0 


39 


5 

14 

3 

5 

13 

40 

15 

5 

fi 

3 


F 


Special  Agents  Series  No.  180. 


r 


FIG.  39.— LOCOMOTIVE  DRAWING   BAGUIO  SPECIAL.   PHILIPPINE   ISLANDS. 


r4 


<i-iV^ 


f 


108 


FIG.  40.— BAGUIO  SPECIAL  LEAVING  STATION. 


h 


Special  Agents  Series  No.  180. 


FIG.  41.— OLDEST  TYPE  OF  PHILIPPINE  THIRD-CLASS  PASSENGER  CAR  (SIDE 

ENTRANCE). 


FIG.  42.— TYPICAL  PHILIPPINE  FOUR-WHEEL  GOODS  WAGON. 


PHILIPPINE  ISLANDS. 


233 


ak-f 


Rolling  stock. 


PASSENGER  CARS, 

Firs  t-class  coaches 

Seamd-class  coaches 

Dining  cars 

Parlor  cars 

Sleeping  cars 

Baggage,  express,  and  mall 

Special  cars 

Total 

FREIGHT  CARS. 

Box 

Flat 

Stock 

Coal 

Refrigerator 

Other  cars  in  freight  service 

In  company  service 

Total 


Northern 
Lines. 


41 
80 
1 
1 
1 
35 
2 


161 


Soutnem 
Lines. 


16 
64 
0 
0 
0 
5 
0 


85 


S91 

132 

33 

59 

9 

77 

15 


916 


420 

204 

24 

17 

2 

0 

13 


680 


Total. 


57 

144 

1 

1 

1 

40 
2 


240 


1,011 
336 
57 
76 
11 
77 
28 


l>|Uftftl 


PASSENGER  AND  FREIGHT  CARS. 

The  above  table  shows  the  amount  of  passenger  and  freight  car 
equipment  on  the  Northern  and  Southern  Lines. 

The  passenger  eouipment  ranges  all  the  way  from  old  and  very 
light  four-wheel  side-entrance  carriages,  as  shown  in  figure  41,  to 
some  modern  and  robust  regular  and  special  equipment,  as  shown  by 
figure  40.  All  the  passenger  stock  on  the  Northern  Lines  is  equipped 
With  vacuum  train  Drakes,  and  on  the  Southern  Lines  all  vehicles  are 
so  equipped  except  the  five  express,  baggage,  and  mail  cars.  Figure 
41  shows  the  type  of  coupling,  buffer,  and  vacuum  brake  hose  used 
on  all  rolling  stock.  The  vacuum  brake  hose  must  be  strongly 
spiraled  insicle  to  prevent  collapsing. 

The  freight  cars  are  very  largely  of  the  goods-wagon  type,  espe- 
cially the  box,  stock,  and  refrigerator  classes.  The  average  capacity 
of  the  freight  cars  on  the  Northern  Lines  is  11.2  short  tons  and  on 
the  Southern  Lines  18.4  short  tons;  14.2  short  tons  is  the  average 
for  all  freight  cars. 

PracticaUy  all  of  the  rolling  stock  is  of  British  manufacture  and 
built  in  accordance  with  typical  British  standards  and  practice, 
especially  the  tired  wheels  on  all  classes  of  cars. 

On  the  Northern  Lines  only  84  of  the  total  of  916  freight  cars  are 
equipped  with  vacuum  train  brakes.  On  the  Southern  Lines  345 
of  the  680  are  so  equipped,  including  250  of  the  420  box  cars. 

WORKSHOPS. 

Workshops  for  the  entire  system  are  located  at  Caloocan,  on  the 
Northern  Lines,  about  5  miles  from  the  main  station  at  Manila. 
This  is  also  where  the  company  residences  are  located  for  the  con- 
tract staff.  These  shops  are  reasonably  well  arranged  and  equipped 
for  the  handling  of  all  kinds  of  repairs  to  all  classes  of  rolling  stock, 
but  are  not  suitable  for  the  manufacture  of  equipment  except  the 
assembling  of  heavy  rolling  stock  and  possibly  the  building  of  some 
of  the  lighter  classes  of  goods  wagons.  About  500  men  are  employed, 
and  it  is  interesting  to  note  that  the  Chinese  are  the  most  useful  all- 


INTENTIONAL  SECOND  EXPOSURE 


PHILIPPINE   ISLANDS. 


233 


i 


Special  Agents  Series  No.  180. 


(I 


i 


FIG.  41.-OLDEST  TYPE  OF  PHILIPPINE  THIRD-CLASS  PASSENGER  GAR  (SIDE 

ENTRANCE). 


FIG.  42.— TYPICAL  PHILIPPINE   FOUR-WHEEL  GOODS  WAGON. 


; '1* '            ,                              - 

Rolling  stock. 

Northern 
Lines. 

Soutnern 
Lines. 

Total. 

PASSENGER  CARS. 

First-class  coaches 

41 

m 
1 
1 
1 

35 
2 

Ifi 
64 
0 
CI 
0 
5 
0 

•W 

S<^cond-class  couches 

144 

JHv,  ing  cars 

1 

I'arlor  cars 

1 

Sleeping  cars 

1 

Baggage,  express,  and  mall 

40 

Special  c-ars 

2 

Total 

101 

H5 

2H) 

FREIGHT  CARS. 

Box 

591 
132 
33 
59 
9 
77 
15 

420 

204 

24 

17 

2 

0 

13 

1,011 

Flat 

330 

Stock 

57 

Coal 

7(t 

Refrigerator 

11 

Other  cars  in  freight  service 

77 

In  company  service 

28 

Total 

910 

680 

1,596 

PASSENGER  AND  FREIGHT  CARS. 

The  above  table  shows  the  amount  of  passenger  and  freight  car 
equipment  on  the  Northern  and  Southern  Lines. 

The  passenger  equipment  ranges  all  the  way  from  old  and  very 
light  four-wlieel  side-entrance  carriages,  as  shown  in  figure  41,  to 
some  modern  and  robust  regular  and  special  equipment,  as  shown  by 
figure  40.  All  the  passenger  stock  on  the  Northern  Lines  is  etjuipped 
with  vacuum  train  Drakes,  and  on  the  Southern  Lines  all  vehicles  are 
so  equipped  except  the  five  express,  baggage,  and  mail  cars.  Figure 
41  shows  the  type  of  coupling,  buffer,  and  vacuum  brake  hose  used 
on  all  rolling  stock.  The  vacuum  brake  hose  must  be  strongly 
spiraled  inside  to  prevent  collapsing. 

The  freight  cars  are  very  largely  of  the  goods-wagon  type,  espe- 
cially the  box,  stock,  and  refrigerator  classes.  The  average  capacity 
of  the  freight  cars  on  the  Northern  Lines  is  11.2  short  tons  and  on 
the  Southern  Lines  18.4  short  tons;  14.2  short  tons  is  the  average 
for  all  freight  cars. 

Practically  all  of  the  rolling  stock  is  of  British  manufacture  and 
built  in  accordance  with  typical  British  standards  and  practice, 
es})ecially  the  tired  wheels  on  all  classes  of  cars. 

On  the  Northern  Lines  only  84  of  the  total  of  916  freight  cars  are 
equipped  with  vacuum  train  brakes.  On  the  Southern  Lines  345 
of  the  680  are  so  equipped,  including  250  of  the  420  box  cai-s. 

WORKSHOPS. 

Workshops  for  the  entire  system  are  located  at  Caloocan,  on  the 
Northern  Lines,  about  5  miles  from  the  main  station  at  Manila. 
This  is  also  where  the  company  residences  are  located  for  the  con- 
tract staff.  These  shops  are  reasonably  well  arranged  and  equipped 
for  the  handling  of  all  kinds  of  repairs  to  all  classes  of  rolling  stock, 
but  are  not  suitable  for  the  manufacture  of  equipment  except  the 
assembling  of  heavy  rolling  stock  and  possibly  the  building  ot  some 
of  the  lighter  classes  of  goods  wagons.  About  500  men  are  employed, 
and  it  is  interesting  to  note  that  the  Chinese  are  the  most  useful  all- 


284 


RAILWAY  MATERIALS,  EQUIPMENT,  ANB  SUPPLIES. 


round  workmee,  particularly  in  the  foundry.     The  general  store- 
room of  the  system  is  in  close  proximity  to  these  shops,  and  many 

of  the  rolling-stock  stores  are  carried  in  the  shops  storerooms. 

OKC5ANIZATION. 

The  operating  organiisation  is  the  typical  departmental  or  branch 
organization  that  usually  goes  with  the  "station-master"  system  of 
railway  operation.  Attention  has  ahready  been  called  to  the  fact 
that  operations  have  been,  in  a  way,  merged  with  the  Bureau  of 
Public  Works  of  the  Philippine  government.  A  directory  of  the 
board  of  directors  and  the  principS  officials  is  given  on  page  272. 

PURCHASES. 

It  is  the  policy,  so  far  as  practicable,  to  make  all  purchases  in  the 
islands—largely  at  Manila.  This  is  done  through  a  superintendent 
of  stores,  under  the  supervision  of  the  general  manager.  The  super- 
intendent of  stores  is  located  at  the  main  storeroom  at  Caloocan. 

Needed  articles  that  can  not  be  obtained  in  Manila  are  handled 
through  the  purchasing  department  of  the  Philippine  government 
i.nd  are  usuaiy  bought  by  Mr.  H.  'L.  Hershey,  purchasing  agent  for 
the  Phdipnine  eovemment,  located  in  the  WhitehaJl  Builing  17 
Battery  Place,  New  York  City.  Mr.  Hershey  also  has  the  tifle  of 
purchasing  agent  for  the  Manila  Railway  Co.  (Ltd.). 

Purchases  of  new  rolling  stock,  as  well  as  other  large  purchases 
will  be  handled  principally  by  the  Nifw  York  office.  On  account  of 
the  special  requirements  in  the  case  of  much  of  this  equipment  par- 
ticularly the  vacuum  train  brakes,  biddera  should  be  specific  in 
then-  tenders,  and  when  not  furnished  with  the  requisite  data  should 
insist  oa  very  definite  inf  ormatioa  m  to  wbat  is  wanted. 


m.  PHILIPPINE  RAILWAY  CO. 

LOCATION  OP  LINES-SOURCE  OF  CAPITAL. 

One  section  of  the  Philippine  Railway  Co.'s  lines  is  located  on  the 
island  of  Panay  and  extends  from  Iloilo,  the  port  of  second  import- 
ance in  the  Philippines,  to  Capiz,  on  the  north  end  of  the  island,  a 
distance 'of  59.4  miles.  The  other  section  is  on  the  island  of  Cebu 
and  extends  from  Argao,  on  the  east  coast  of  the  south  end  of  the 
island,  through  Cebu,  the  port  of  third  importance,  to  Dango,  on 
the  east  coast  of  the  north  end  of  the  island,  a  distance  of  72.3  miles. 
The  present  mileage  thus  totals  131.7,  all  of  3-foot  6-inch  gauge. 

The  financing  and  construction  of  these  lines  was  carried  out  by 
J.  G.  White  &  Co.,  of  New  York  City,  and  they  have  since  been  oper- 
ated as  one  of  this  company's  activities.  The  capital  was  largely,  if 
not  entirely,  from  American  or  local  Philippine  sources. 

fflSTORICAL  SURVEY— CAPITAL  OBLIGATIONS. 

This  company  was  chartered  in  perpetuity  March  5,  1906,  in 
Connecticut  to  construct  (under  a  concession  granted  July  13,  1906, 
by  the  Philippine  government  in  accordance  with  acts  of  Congress 
of  the  United  States  and  approved  by  the  Secretary  of  .War)  lines  of 
railway  in  the  Philippine  Islands,  as  follows:  Island  of  Panay,  100 
miles;  island  of  Negros,  100  miles;  island  of  Cebu,  95  miles.  The 
concession  fixes  the  company's  tax  rate  at  0.5  per  cent  of  the  gross 
earnings  for  a  period  of  30  years  and  at  1.5  per  cent  for  50  years 
thereafter,  these  payments  to  be  made  in  lieu  of  all  other  taxes. 

Under  the  terms  of  the  concession  the  Philippine  government 
guarantees  interest  on  bonds  issued  to  the  extent  of  95  per  cent  of 
the  cost  of  construction  of  the  lines.  Of  the  authorized  $15,000,000 
of  4  per  cent  30-year  gold  bonds,  $8,551,000  was  issued  in  1907  under 
the  above  terms.  These  are  to  matiu-e  July  1,  1937,  or  they  may  be 
drawn  by  lot  and  redeemed  at  110  and  interest  if  they  can  not  be 
purchased  below  this  figure.  A  sinking  fund  for  redeeming  this 
l>ond  issue  was  to  be  provided,  as  follows:  0.5  per  cent  on  the  amount 
of  outstanding  bonds  from  July  1,  1911,  to  July  1,  1920,  inclusive, 
and  1  per  cent  from  July  1,  1921,  to  date  of  maturity,  said  sinking 
contributions  to  be  made  before  any  dividends  can  be  paid  on  any 
issues  of  capital  stock.  The  balance  sheet  does  not  disclose  that 
anv  such  sinking  fund  has  been  established  thus  far.  Five  million 
dollars  of  common  stock  has  been  authorized  and  issued  for  the  con- 
tractual rights,  and  this  amount  of  stock  is  now  outstanding. 

INVESTMENT  ASSETS. 

The  investment  assets  standing  on  the  balance  sheet  December  31, 
1915,  were  as  follows:  Cost  of  road,  $6,052,530;  cost  of  equipment, 
$510,996;  general  expenditures,  $2,586,267;  total  investment  assets, 

235 


t 


236 


:BAILWAY  MATBMALS,  IQUIPMENT,  AND  SUPPLIES. 


!!lit?:.  t!;A  ^*^  ^^^'^i  *H^?«^  «^  w>»<*  ^nci  equipment  as  almost 
exactly  $50,000  per  mile  of  line  and  the  general  expenditures  as 

'f  yfn  oPr™"®'.?*^'??  ^¥  mvestment  .assets  total  the  high  amount 
of  169,325  per  mile  of  line  for  a  railway  of  3.foot  64nch  gauge.  No 
details  are  available  of  the  general  expenditures,,  particularly  what 
^h^  ™  "l  Tr""^  \charged  to  the  sale  of  the  4  per  cent  bonds, 
llie  general  balanc®  sheets  for  December  31,  1915,  show  the  con- 
ff»^:^"»l  "g^¥  *»  ^fmed  at  12,999,000  in  the  assets,  and  in  the 
habilrt^^  an  item  of  12,024,487  is  carried  as  the  amount  due  the 
rMlippme  govemment  under  the  guaranty  to  meet  the  bond  interest. 

tlAFWC 

f^lS'lt^  revenues  from  transDortation  were  derived  about 

friTo-thirds  f rom^  passenger  business  and  one-third  from  freight  traffic. 
ff  io^iAir  '%^^^  passengers  were  carried,  producing  a  revenue 
01  izisi,015;  of  these  0.2  per  cent  were  firat  class  and  contributed  1 
per  cent  of  the  revenue,  14  per  cent  were  second  class  and  contrib- 
uted  20  per  cent  of  the  revenue,  and  85.8  per  cent  were  third  olass 
iin,d^  contnbuted  79  per  cent  of  the  revenue. 
The  average  distance  traveled  was  14J  miles,  and  the  average 

rTrFao^Z^Pr**?!^"''^^^^^^^  ^^^^^  ^-^S  cents.  The  freight  traffic 
totaled  92,207  short  tons,  of  which  52.6  per  cent  consisted  of  affri- 
culturil  products,  26.4  per  cent  of  mineral  products,  and  13.3  per 

1«  41  lo'^o  *''^T^'^  ^T^'  ^^  ^^*'^  ^^^^"®  ^^«^^  ^^%ht  trafec 
was  fll9,712,  maMng  the  average  earnings  per  ton  carried  11.298. 

mcluding   switchmg    charges.    The    ton-mile   statistics    were    not 

availaole* 

WORKING  MESULTa 

The  following  table  shows  the  working  results  for  the  year  ended 

December  31,  1915:  '^ 


Items. 


Operating  re  vimies — , 

Operating  e  xpensas 

(Oparatiaf  ratio:  «7a  per  ctmt.) " " 

Met  operating  re  venue 

Net  revenue  from  outside  operationsl '.'.'.'. 
Otlier  iii'iome 


Amount. 


1362,407 
243,035 


.1  OCSl  •••.••••••.«.,.,.,,.,.,,,,,,,,,, 


119,373 
9,020 
3,356 


Twes. 


<  Jross  corporate  income 

Interest  charges , 

Otli«r  iaoom«  dodinctions. '.I'.','.'. 

.Net  corporate  loss , 


131,648 


2,995 


128,653 

342,040 

1.265 


314,652 


EMPLOYEiS  AND  WAGEa 

The  followinjp  table  shows  the  number  of  employees,  the  davs 

worked,  and  tie  compensation  for  the  year  1915.    This  shows  a 
lugher  rate  of  wages  than  lor  any  other  railway  covered  by  this 


PHILIPPINE   ISLANDS. 


237 


report,  but  it  will  be  noted  that  the  number  of  employees  is  only  5 
per  mile  of  line,  which  is  lower  than  for  any  other  line: 


Employees. 

Number. 

Days 
worked. 

Compen- 
sation for 
year. 

Daily 
average. 

Yearly 
average. 

General  officers 

5 
660 

1,895 
207,997 

f 19, 562 
135,958 

110.32 

.65 

$3,910.47 
206.00 

AUothers 

ROADWAY  AND  TRACK. 

These  lines  are  well  located  and  constructed  and,  with  the  exception 
of  a  piece  of  1^  per  cent  grade,  the  maximum  grade  is  1  per  cent. 
Out  of  a  total  of  330  openings,  totaling  17,725  feet  in  length,  314, 
totaling  16,525  feet  in  length,  are  permanent  structures,  and  16, 
totaling  1,200  feet,  are  wooden  trestles.  The  track  is  laid  with  70 
and  60  pound  rails,  and  the  ties  are  now  mostly  Philippine  hard- 
woods, which  cost  86.5  cents  per  tie  in  1915.  All  rail  fastenings, 
frogs,  switches,  and  track  appliances  are  along  the  Hnes  of  American 
standards  and  practice. 

LOCOMOTIVES. 

The  lines  have  a  total  of  15  locomotives.  Twelve  of  these  are  type 
OOOo,  weighing  (exclusive  of  tender)  86,500  pounds  each;  they  are 
used  for  general  road  service  in  hauling  freight,  passenger,  and  mixed 
trams,  the  greater  part  of  the  road  mileage  being  made  by  mixed 
trams.  The  other  three  are  type  000  switching  engines,  weighing 
(exclusive  of  tender)  64,400  pounds  each.  These  locomotives  are  all 
of  American  manufacture  and  built  along  the  lines  of  American 
standards  and  practice.  Fuel  on  these  lines,  delivered  to  the  engine 
cost  $4.56  per  short  ton  during  the  year  1915,  but  the  cost  was  greatlv 
mcreased  during  the  years  1916  and  1917. 

PASSENGER  AND  FREIGHT  CARS. 

The  passenger  and  freight  car  equipment  is  as  follows:  Passenger 
cars—Parlor  and  first  class  combined,  1 ;  first  and  second  class  com- 
bined, 7;  second  class,  12;  third  class,  21;  second  class  and  baggage 
combined,  6;  other  cars  in  passenger  service,  2;  total,  49  Freight 
cars—Box,  82;  flat,  43;  stock,  6;  coal,  4;  Rodgers  ballast,  57;  derrick. 
2;  caboose,  1;  other  road  cars,  4;  total,  199. 

The  average  capacity  of  all  freight  cars  is  58,300  pounds,  of  the  box 
cars  45,000  pounds,  of  the  flat  cars  76,200  pounds,  and  of  the  coal  cars 
56,000  pounds.  Forty-seven  of  the  49  passenger  cars  are  equipped 
with  air  brakes  and  automatic  couplers,  and  all  but  4  of  the  box  cars 
of  the  freight  equipment  are  provided  with  ak  brakes  and  automatic 
couplers.  This  equipment  is  all  of  American  manufacture  and  is 
along  the  usual  Imes  of  practice,  includmg  chilled  cast-u-on  wheels. 

WORKSHOPS. 

The  shops  of  these  lines  are  located  at  Iloilo,  and  during  the  year 
1915,  in  addition  to  the  railway  company's  own  work,  did  commercial 


238  BATLWAY  MATERIALS,  EQXTIPM'ENT,  AND  SUPPLIES. 

shop  work  to  the  extent  of  147,880,  from  which  an  income  of  $9,020 

wt\s  earned.  ' 

The  organization  of  tliese  lines  more  nearly  approaches  the  Ameri- 
can divisional  arrangement  than  docs  that  of  any  of  the  other  rail- 
ways carried  by  this  report.    A  directory  of  the  principal  officials  is 

given  on.  page  272. 

PURCHASES. 

The  local  storekeepers  are  authorized  to  make  purchases  of  small 
artK'les  needed  immt^diately.  Other  materials  and  supplies  that  can 
be  obtained  m  the  Phihppines  are  handled  by  the  purciiasing  ao-ent 
supiTviscd  by  the  general  manager;  purchases  of  importance  are'^isu- 
aliy  given  personal  attention  by  the  latter.  Purchases  of  equip- 
?^r^^  wf  ■  *'*!^  il^^  ^^  obtained  in  the  Philippines  are  handled  by 
tJ.  ii.  White  &  Co.,  of  New  Ybrk  City,  in  connection  with  a  large 
number  of  other  properties,  under  the"  supervision  of  the  manager  of 
purchfises,  Mr.  K  N.  Chilson,  of  the  J.  G.  White  Engineering  Corpoj 
tioii,  of  43  Exchange  Plaoa  ^  .     ^ 


ora- 


IV.  MANILA  ELECTRIC  RAILROAD  FLIGHTING  CORPORATION- 
MANILA  SUBURBAN  RAILWAYS  CO. 

LOCATION  AND  EXTENT. 

The  Manila  Electric  Railroad  &  Lighting  Corporation  owns  or 
controls  all  the  street  and  suburban  railways  in  and  around  Manila. 
It  owns  and  operates  33.1  miles  of  street  railways,  as  well  as  the  elec- 
tric light  and  power  plant  supplying  the  entu-e  city  of  Manila,  and 
also  controls  and  operates  as  a  subsidiary  the  iJanila  Suburban 
Railways  Co.,  with  12  miles  of  route  running  from  Manila  past  Fort 
McKinley  to  Pasig. 

SOURCE  OF  CAPITAL  AND  PRESENT  CONTROL. 

The  financing,  construction,  and  reconstruction  of  these  properties 
was  carried  out  by  J.  G.  White  &  Co.,  of  New  York,  and  they  have  since 
been,  and  are  now,  operated  as  one  of  the  large  number  6i  properties 
managed  hj  this  organization.  The  capital  for  the  reorganization, 
reconstruction,  and  new  construction  of  tlie  present  plant  was  largely, 
if  not  entirely,  from  American  and  local  Philippine  sources. 

HISTORICAL  SURVEY— CAPITAL  OBLIGATIONS. 

The  present  company  was  chartered  June  26,  1903,  under  the  laws 
of  the  State  of  Connecticut,  and  acquired  all  the  stocks  and  bonds 
of  the  Manila  Electric  Railroad  &  Light  Co.,  practically  all  the 
stocks  of  the  Union  Trunk  Co.,  and  the  Compania  de  los  Trans vias 
de  Filipinas,  and  more  than  98  per  cent  of  the  stock  of  La  Electricesta ; 
it  also  owns  all  the  stock  of  the  Manila  Suburban  Railways  Co., 
incorporated  in  July,  1906,  under  the  laws  of  Connecticut,  to  build 
electric  railways  and  operate  electric  light  and  power  systems  along 
such  railways  in  the  suburbs  of  Manila.  This  last  conapany's  fran- 
chise expires  in  1953. 

The  funded  obligations  of  the  Manila  Electric  Railroad  &  Lighting 
Corporation  include  $3,000,000  first  mortgage  6  per  cent  50-year 
gold  bonds  authorized  (all  issued  and  now  outstanding)  and  $1,000,000 
6  per  cent  50-year  notes  authorized  (all  issued  and  now  outstanding). 
There  is  an  authorized  amount  of  $3,000,000  common  stock,  of 
which  $1,685,000  has  been  issued  and  is  now  outstanding.  This 
makes  the  outstanding  capital  obligations  total  $5,685,000,  of  which 
the  balance  sheet  shows  $71,042  funded  debt  owned  and  held  as  in- 
vestment assets. 

Of  an  authorized  total  of  $2,500,000,  the  Manila  Suburban  Rail- 
ways Co.  has  issued  and  now  outstanding  $650,000  first  mortgage  5 
per  cent  gold  bonds,  with  40-year  sinking  fund.  Of  an  authorized 
total  of  $1,000,000  common  stock,  there  is  now  outstanding  $530,000, 
all  owned  by  the  Manila  Electric  Railroad  &  Lighting  Corporation. 
This  makes  the  outstanding  capital  obligations  of  the  Manila  Sub- 

239 


11' 


240* 


RAILWAY  MATEWALS,  EQUIPMENT,  AND  SUPPLIES. 


urban  Railways  Co.  total  $1,180,000.  The  balance  sheet  shows 
$19,000  of  the  bonds  deposited  with  trustee  of  sinking  fund  and 
held  .as^  investment  assets.. 

INVESTMENT  ASSETa 

The  balance  sheet  for  December  31,  1915,  shows  the  cost  of  the 
plant  of  all  the  property  of  the  Manila  Electric  Kailroad  &  Lighting 
Corporation  as  totaling  $6,030,045.  In  addition,  there  are  shown 
$20,000  of  stock  owned  in  other  enterprises  and  the  above-mentioned 
$71 ,042  of  funded  debt  owned.  The  balance  sheet  for  the  same  date 
for  the  Manila  Suburban  Railwavs  Co.  shows  the  cost  of  the  plant 
as  $1,204,690,  and,  in  addition,  there  is  held  by  the  trustee  of  the 
sinking  fund  the  $19,000  above  mentioned. 

TlAfllC  AND  OTHER  BUSINESS. 

The  system  of  fares  on  the  Manila  Electric  Railroad  &  Lighting 
Corporation  lines  involves  the  carrying  of  first-class  passengers  at  a 
uniform  rate  of  12  centavos  (6  cents)  and  second-class  passengers 
for  10  centavos  (5  cents)  for  all  ri(>es,  including  very  liberal  transfer 
privileges.  The  management  has  given  serious  consideration  to  the 
adoption  of  a  zone  system  of  fares  similar  to  that  in  use  in  Shanghai 
(see  p.  138).  From  the  writer's  observation  in  Australia,  it  would 
Seem  that  this  might  be  done  with  much  advantage  to  the  convenience 
of  the  public  as  a  whole  and  the  earnings  of  the  company;  some  of 
the  rides  are  entirely  too  long  for  the  fares  charged,  while,  on  the 
other  hand,  riding  for  short  distances  is  discouraged  by  the  uniform 
fare,  5  cents  being  a  very  high  charge  for  a  second-class  fare  in  the 
Far  East.  One  point  that  has  considerable  weight  in  this  connection 
is  the  competition  of  the  ''calesa,"  a  horse-drawn,  two-wheeled 
vehicle,  as  sliown  in  figures  44  and  45. 

It  is  stated  that  there  are  about  6,000  of  these  in  Manila,  with  a 
seating  capacity  amounting  to  double  that  of  the  entire  equipment 
of  the  street  railwavs.  While  these  vehicles  are  supposed  to  have 
a  regularly  established  rate  of  fares,  the  rates  are  in  reality  very 
variable  when  subject  to  bargaining  in  the  presence  of  competition. 
This  form  of  conveyance  takes  the  place  of  the  man-drawn  jinrikisha 
that  one  finds  in  China  and  Japan  and  other  parts  of  the  Far  East 
and  is  a  very  serious  competitor  of  the  electric  street  car. 

The  transportation  earnings  of  the  Manila  city  lines  for  the  year 
ended  December  31,  1915,  were  $523,017,  of  which  20  per  cent  was 
from  first-class  travel,  79  per  cent  from  second-class,  and  1  per  cent 
from  freight  and  miscellaneous  items.  The  transportation  earnings 
( oiistituted  about  40  per  cent  of  the  total  earnings  of  the  corporation. 

The  transportation  earnings  of  the  Manila  Suburban  Railways 
totaled  $135,274,  representing  80  per  cent  of  the  total  earnings. 
i'  ii-st-class  travel  accounted  for  18  per  cent  and  second-class  for  Uie 
cmainder;  the  other  transportation  earnings  are  only  a  fraction  of 
1  per  cent  of  tho  whole. 

WORKING  RESULTS. 

The  last  annual  report  available  when  the  writer  was  in  Manila 
in  May,  1917,  was  for  the  jear  ended  December  31,  1915.  The 
significant  figures  are  shown  m  the  following  table: 


Special  Agents  Series 

No. 

180. 

s 

i 

_  < 

Vi  •» 


rv 


FIG.  43.— SHELTERED  WAITING   STATION.   MANILA  STREET   RAILWAYS. 


FIG.  44.— TRACK   RECONSTRUCTION,   MANILA  STREET   RAILWAYS. 


INTENTIONAL  SECOND  EXPOSURE 


240" 


RAILWAY   MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


l\ 


urban  Railways  Co.  total  $1,180,000.  The  balance  sheet  shows 
$19,000  of  the  bonds  deposited  with  trustee  of  sinking  fund  and 
held  as  investment  assets. 

INVESTMENT  ASSETS. 

The  balance  sheet  for  December  31,  1915,  shows  the  cost  of  the 
plant  of  all  the  property  of  the  Manila  Electric  Kaih^oad  &  Lighting 
Corporation  as  totaling  $6,030,045.  In  addition,  there  are  shown 
$20,000  of  stock  o'WTied  in  other  enterprises  and  the  above-mentioned 
$71,042  of  funded  debt  owned.  The  balance  sheet  for  the  same  date 
for  the  Manila  Suburban  Railways  Co.  shows  the  cost  of  the  plant 
as  $1,204,690,  and,  in  addition,  there  is  held  by  the  trustee  of  the 
sinking  fund  the  $19,000  above  mentioned. 

TRAFFIC  AND  OTHER  BUSINESS. 

The  s^-stem  of  fares  on  the  ManOa  Electric  Railroad  &  Lighting 
Corporation  lines  involves  the  carrying  of  first-class  passengers  at  a 
uniform  rate  of  12  centavos  (6  cents)  and  second-class  passengers 
for  10  centavos  (5  cents)  for  all  rides,  including  very  liberal  transfer 
privileges.  The  management  has  given  serious  consideration  to  the 
adoption  of  a  zone  system  of  fares  similar  to  that  in  use  in  Shanghai 
(see  p.  138).  From*  the  writer's  observation  in  Australia,  it  would 
seem  that  this  might  be  done  with  much  advantage  to  the  convenience 
of  the  public  as  a  whole  and  the  earnings  of  the  company;  some  of 
the  rides  are  entirely  too  long  for  the  fares  charged,  whde,  on  the 
otlier  hand,  riding  for  short  distances  is  discouraged  by  the  uniform 
fare,  5  cents  being  a  very  high  charge  for  a  second-class  fare  in  the 
Far  East.  One  point  that  has  considerable  weight  in  this  connection 
is  the  competition  of  the  *'calesa,"  a  horse-drawn,  two-wheeled 
vehicle,  as  snown  in  figures  44  and  45. 

It  is  stated  that  there  are  about  6,000  of  these  in  Manila,  with  a 
Beating  capacity  amounting  to  double  that  of  the  entire  equipment 
of  the  street  railways.  While  these  vehicles  are  supposed  to  have 
a  regularly  established  rate  of  fares,  the  rates  are  in  reality  very 
varialde  wJien  subject  to  bargaining  in  the  presence  of  competition. 
This  form  of  conveyance  takes  the  place  of  the  man-drawn  jinrikisha 
that  one  finds  in  China  and  Japan  and  other  parts  of  the  Far  East 
and  is  a  very  serious  competitor  of  the  electric  street  car. 

The  transi)ortation  earnings  of  the  Manila  city  lines  for  the  year 
ended  December  31,  1915,  were  $523,017,  of  which  20  per  cent  was 
from  first-class  travel,  79  per  cent  from  second-class,  and  1  per  cent 
from  freight  and  miscellaneous  items.  The  transportation  earnings 
( oiistituted  about  40  per  cent  of  the  total  earnings  of  the  corporation. 

The  transportation  earnings  of  the  Manila  Suburban  Railways 
iotaled  $135,274,  representing  80  per  cent  of  the  total  earnings. 
I  irst-class  travel  accounted  for  18  per  cent  and  second-class  for  the 
Minainder;  the  other  transportation  earnings  are  only  a  fraction  of 
i  pel-  cent  of  the  whole. 

WORKING  RESULTS. 

The  last  annual  report  available  when  the  writer  was  in  Manila 
in  May,  1917,  was  for  the  year  ended  December  31,  1915.  The 
significant  figures  are  shown  in  the  following  table: 


Special  Agents  Series  No.  180. 


FIG.  43.— SHELTERED   WAITING   STATION.   MANILA  STREET   RAILWAYS. 


FIG.  44.— TRACK   RECONSTRUCTION.   MANILA  STREET   RAILWAYS. 


PHILIPPINE  ISLANDS. 


241 


special  Agents  Series  No.  180. 


FIG.  45.— CENTER-ENTRANCE  CAR.   MANILA  STREET   RAILWAYS. 


FIG.  46.— END-ENTRANCE  CAR,   MANILA  STREET   RAILWAYS. 


MANILA   ELECTRIC   RAILROAD   &   LIGHTING  CORPORATION. 


Items. 

Amount. 

Items. 

Amount, 

(  ]  erating  revenues 

$1,317,932 
674,341 

Net  Income --.- 

$360,517 

i  1  crating  expenses 

Reserves,  replacements,  and  renewals. . . 
Dividends  on  $1,685,000  common  stock. . . 

Total  income  deductions 

(')I>erating ratio:  51.2 percent.) 

Ni  t  operating  income 

73,600 
275,000 

643,591 
6,540 

M 1  icellaneous  income 

348,600 

<  r  (sscarporate  income 

650,131 

Surnlus  for  vear 

11,917 

Taxes  on  real  and  permanent  property. . 

Coal  tax : :.......... 

4,887 

7,052 

37,533 

142 

240,000 

Taxes  on  earnings 

Miscellaneous  income  charges 

Interest  on  funded  debt 

Total  taxes  and  fixed  charges 

289,614 

MANILA 

SUBURBAN  RAILWAYS  CO. 

Items. 

Amount. 

Itrms. 

J : — — — ^ 

Amount. 

Operating  revenues 

• 

$170,717 
76,140 

Net  Income ,,,.. 

$57,311 

Operating  expenses 

Reserves  for  retf/acement 

(Operating  ratio:  44.6  per  cent.) 

6,400 
53,000 

Net  operating  income 

94,577 
380 

Dividends  on  $430,000  common  stock 

Total  ineome  deductions 

Deficit  for  vear 

Miscellaneous  income 

G ross  corporate  income 

94,957 

59,400 

2,080 

Taxes  on  earnings 

5,146 
32,500 

Interest  on  funded  debt : 

Total  taxes  and  fixed  charges 

37,646 

i 


ROADWAY  AND  POWER  PLANT. 

Some  of  the  streets  of  Manila  are  narrow  and  crooked,  making  the 
building  of  street  railways  rather  difficult  as  regards  both  the  track 
and  the  overhead  construction.     In  a  number  of  instances  the  lines 

fo  in  one  direction  on  one  street  and  return  by  an  adjoining  street, 
'he  tracks  in  busy,  narrow  streets  are  laid  with  92-pound  girder  rail, 
some  of  which  is  now  being  replaced  with  a  still  heavier  girder  rail. 
In  other  districts  the  track  is  laid  with  70-pound  T  rail.  The  track 
materials  are  from  American  sources  and  along  American  lines  of 
standards  and  practice,  including  a  considerable  amount  of  special 
work.  The  same  remarks  apply  to  the  overhead  contact  construc- 
tion, some  of  which  is  rather  complicated  on  account  of  the  narrow 
and  crooked  streets. 

There  is  one  central  power  house,  located  on  the  Pasig  River, 
which  furnishes  power  for  all  the  above  railwaj^s  and  also  all  the 
commercial  current  for  lighting  and  power  in  Manila  and  its  suburbs. 
Fuel  is  handled  in  lighters  directly  to  this  central  power  house. 

Figure  44  shows  track  reconstruction  work  in  progress  on  the 
approaches  to  one  of  the  bridges  on  the  Pasig  River. 

ROLLING  STOCK. 

The  car  equipment  for  the  city  lines  consists  of  72  closed  and  48 
open  passenger  cars,  1  exprress  car,  3  work  cars,  1  wreck  car,  1  town 
car,  and  1  pole  car,  all  of  which  are  electrically  equipped  except  1 

106229"— 19 16 


INTENTIONAL  SECOND  EXPOSURE 


Special  Agents  Series  No.  180. 


FIG.  45.— CENTER-ENTRANCE  CAR,   MANILA  STREET   RAILWAYS. 


FIG.  46.— END-ENTRANCE  CAR,   MANILA  STREET   RAILWAYS. 


PHILIPPINE  ISLANDS. 
MANILA   ELECTRIC   RAILROAD    &   LIGHTING   CORPORATION. 


241 


Items. 

Amount. 

Items. 

Amount. 

<  pcratiiifi  revenues 

$1,317,932 

674,341 

1 

Net  Income 

I3f)0,517 

f  |)craling  expenses 

j  Reserves,  replacements,  and  renewals. . . 
i  Dividends  on  81,685,000 common  stoclc... 

peruling ratio:  51.2 percent.) 
N«?t  operating  income 

643,591 
6,540 

73,oOO 

275,000 

\I  iscellaneous  income 

348,600 

'  rosscarporate  income 

650,131 

Surnlus  for  vcar 

11.917 

Taxes  on  re^l  and  permanent  property. . 
Coal  tax 

4,887  I 

7,a52 

37,533 

142 

240,000 

Taxes  on  earnings 

Miscellaneous  i  ncorae  charges 

1   terest  on  funded  debt 

Total  taxes  and  fixed  charges 

289,614  ; 

j 

MANILA  SUBURBAN  RAILWAYS  CO. 


Items. 


Amount. 


Operating  revenues 

( )perating  expenses 

(( )pcrating  ratio:  44.6  per  cent.) 

Net  operating  income 

Miscellaneous  income 


0  ross  corporate  income. 


Taxes  on  earnings 

Interest  on  funded  debt. 


Total  taxes  and  fixed  charges. 


-• 

8170,717 
76, 140 


=s.v 


Itrms. 


Amount. 


94, 577 
380 


94,957 


5, 146 
32,500 


37,646 


i  Net  income. 


Reserves  for  reiZ/acement 

Dividends  on  $fl^,000  common  stock. . . 


Total  income  deductions. 
Deficit  for  year 


1.57,311 


6,400 

53,000 


59,400 


2,089 


ROADWAY  AND  POWER  PLANT. 

Some  of  the  streets  of  Manila  are  narrow  and  crooked,  making  the 
building  of  street  railways  rather  difficult  as  regards  both  the  track 
and  the  overhead  construction.  In  a  number  of  instances  the  lines 
go  in  one  direction  on  one  street  and  return  by  an  adjoining  street. 
The  tracks  in  busy,  narrow  streets  are  laid  with  92-pound  girder  rail, 
some  of  which  is  now  being  replaced  with  a  still  heavier  girder  rail. 
In  other  districts  the  track  is  laid  with  70-pound  T  rail.  The  track 
materials  are  from  American  sources  and  along  American  lines  of 
standards  and  practice,  including  a  considerable  amount  of  special 
work.  The  same  remarks  apply  to  the  overhead  contact  construc- 
tion, some  of  which  is  rather  complicated  on  account  of  the  narrow 
and  crooked  streets. 

There  is  one  central  power  house,  located  on  the  Pasig  River, 
which  furnishes  power  for  all  the  above  railways  and  also  all  the 
comniercial  current  for  lighting  and  power  in  Manila  and  its  sul)urbs. 
Fuel  is  handled  in  lighters  directly  to  this  central  power  house. 

Figure  44  shows  track  reconstruction  work  in  progress  on  the 
approaches  to  one  of  the  bridges  on  the  Pasig  River. 

ROLLING  STOCK. 

The  car  equipment  for  the  city  lines  consists  of  72  closed  and  48 
open  passenger  cars,  1  exitress  car,  3  work  cars,  1  wreck  car,  1  town 
car,  and  1  pole  car,  all  of  which  are  electrically  equipped  except  1 

106229°— 19 16 


I 


SdxM 


RAILWAY  MATEKIALS,  EQUIPMENT,  AKD  SITPPLIES. 


IIIM 


of  the  open  passenger  care  and  the  pole  car.  The  suhurban  hnp 
egmpment  consists  of  6  closed  passenger  cars  and  7  freight  cars  i\] 
of  wtich  are  electncally  equipped  except  3  of  the  freight  cars      Whi 

Trt  ofln"' f  R  T;P""'rVV?^"'  American  source^s,  a  considerai 
^  mi  British  and  Belgian  manufacture 

Vil,Z  f,«'™P*»y°'g  illustrations  show  several  types  of  these  car. 
Figure  45  shows  one  of  the  latest  center-entrance  cars 

;„„ M"^  "^"^  1  *^ypej^«'-e  fabricated  in  the  United  States  accor,'- 
bEn  K?^^  """^  "".^'T  '^P?^  ^""'^^  'l"^  t»  Manila,  where  they 
mnv's  o^/sb'^n?*' Tr*"'^^  assembled  and  comnleted'in  the  com^ 
E^  TLl  P  f  ^t^  arrangement  is  of  special  advantage  in  tho 
saving  of  ocean  freight  charges.  Particular  attention  is  called  to 
the  roof  airangement  of  this  equipment,  which  is  so  desig^ed^onl  "r 
to  keep  out  tKe  veiy  heavy  rains  durikg  typhoon  seasSlls. 

WORKSHOPS-ORGANIZATION. 

Li  connection  with  the  general  offices-and  central  car  bams  the 
f^^L^fZ  ^7,f:  ^^?<^^h  well  arranged  and  equipped  Zp  for 
msnection  and  the  making  of  all  classes  of  repairs  to  the  equipment 
mcludmg  the  assembling  and  completing  of  cars,  as  above  expEd 
The  general  storerooms  are  locateJat  this  same  place,  and  here  t"  ere 

gre^t  distance  from  sources  of  supply.  ^ 

8imilaVt'?Th«?*i^"f^°'^.T*^  the  operations  of  these  properties  is 
suniiai  to  that  m  the  other  activities  of  J.  G.  White  &  Co  as  i« 
mdicated  by  the  directory  of  the  principal  officials  given  Tn  page  273 

PDRCHASES. 

praeticaM^  to  obtaiB  supBliesiritl^^^^  ^^s^^h  'a^ti  le^ 

as  can  not  be  obtained  there  are  ordered  from  the  mwYortlmtl 
of  the  J.  G.  White  &  Co.  mterests  and  PurXses  arf ilde^i^^^^ 
the  malinger  of  piirehases  of  the  J.  G.  WBite  EnEineerin^Zmn^^^ 
at  U  Exchange  Place,  New  York  City,.         ^'W^®'^™ig  Corpoiation 


Part  6.— CONCLUSIONS  AND  SUGGESTIONS. 

INTRODUCTION. 

In  this  chapter  an  effort  will  be  made  to  summarize  the  conclusions 
of  the  writer's  investigation  and  to  formulate  such  suggestions  as 
seem  warranted.  All  the  situations  covered  in  this  report  will  be 
referred  to  in  general.  Remarks  concerning  China  are  to  be  under- 
stood as  applying  to  both  China  proper  and  Manchuria,  and,  unless 
otherwise  stated,  the  same  will  be  true  of  Japan  and  Chosen.  The 
original  purpose  of  this  report  was  to  cover  the  markets  for  railway 
materials,  equipment,  and  supplies,  and  it  is  fully  realized  by  tho 
writer  that  this  hitention  has  oeen  departed  from  to  a  certain  ex- 
tent, in  that  a  considerable  part  of  the  data  may  be  considered  aa 
referring  to  investments  rather  than  markets.  Circumstances,  how- 
ever, have  seemed  to  justify  this  treatment. 

PAST  PROGRESS. 

It  is  felt  that  the  data  included  in  this  report  show  conclusively 
that  Chma  has  made  real  progress  toward  a  solution  of  its  railway 
problems,  particularly  when  one  considers  the  ''original  conditions." 
One  of  the  convincing  evidences  that  China  has  made  substantial 
progress  in  its  railway  development  is  to  be  found  in  the  working 
results  of  the  present  railways,  not  only  in  cases  where  profits  might 
reasonably  have  been  expected,  but  alijo  in  others  where  they  could 
hardly  have  been  anticipated. 

^  Probably  the  best  arrangement  for  the  railways  in  China  would  be 
Government  ownership  and  operation  under  a  strong  central  organ- 
ization, such  organization  to  be  assisted  for  the  present  by  broad- 
minded  foreign  railway  experts  who  will  work  for  the  railway  develop- 
ment of  Chma  as  a  whole  instead  of  the  limiting  *  'sphere-of-inliuence" 
policy  of  the  past. 

Regarding  Japan,  it  seems  only  necessary  to  say  that  it  has  passed 
through  all  the  stages  of  its  railway  development  until  at  present, 
from  the  standpoint  of  railway  markets,  it  seems  a  question  rather 
of  competition  from  Japanese  sources  than  of  retauiing  the  general 
trade  hi  the  Empire  that  the  United  States  has  enjoyed  in  the  past. 
While  there  will  continue  to  be  markets  for  many  materials  of  Amer- 
ican manufacture,  the  Japanese  will,  of  their  own  accord,  investigate 
and  decide  as  to  their  requirements.  In  short,  Japan  has  reached  the 
pomt  where  it  is  capable  of  carrying  on  its  own  individual  railway 
development.  This  has  been  the  object  of  the  Japanese  railway 
policy  for  a  considerable  number  of  years. 

FUTURE  PROSPECTS. 

Japan's  present  ability  to  supply  and  control  most  of  its  railway 
requn-ements  in  normal  times  will  no  doubt  be  fui'ther  developed, 

243 


244:  BAILWAY  MATERIALS,  BQUIPMEMT,  AND  SUPPLIES. 

Lion  in  the  Chinese 
)m0nts  that  Japan 

Shantung.       possibility  of  similar  developments  in 

Railway  progrws,  in  China  mil  midonbtedly  be  substantial,  and  if 
the  rastrictions  of  the  " spheres  of  influence'^  and  the  railway  loan 
a|?reejnente  are  ehmmateil  (as  in  fairness  to  China  they  should  be) 
this  development  may  be  phenomenal—especially  if  China  '  in  turn' 
corrects  some  of  the  retarding  internal  conditions,  such  as 'the  likin 
taxes  and  '^smieeze,"  and  eliminates  the  political  influences  and  local 
miUtaiT  mterferences.    When  the  volume  of  business  handled  is  con- 
sKtered  m  connection  with  the  rather  small  ainoimt  of  rollm?  stock 
It  becomes  apparent  that  the  administration  of  these  Imes  is  being 
handltti  with  considerable  efficiency,  particularlv  when  allowances  are 
made  for  all  the  handicapping  conditions.    Improvement  in  working 
results  would  be  brought  about  if  some  of  the  obvious  restriction! 
could  be  broadly  corrected. 

CONSOLIDATION  OF  CHINESE  GOVEKNMENT  RAILWAYa 
It  is  debatable  whether  consohdation  or  unification  is  the  correct 

nL^ci^^*^;rif ivta^vT*^  '"'^^  ^"•'"^  *« '« ^^^^''^''' 

,  The  ^Ministry  of  Communications"  has  made  considerable  nroffress 
m  what  may  be  termed  regulatory  requirements,  such  as  those  makine 
^enl^J^l^T^  accounts,  the  operating  oi^ankation,  and,  to  I 
certaiii  extent,  the  oneratmg  methods  of  the  several  raOways  con- 
stitutmg  the  group  of  hues  known  as  the  Chmese  Government  Rail- 
ways,  lliere  has  been  some  progress  toward  through  handlinc^  of 
traffic  and  interchange  of  equipment,  but  very  Httle  actual  progress 
has  been  made  m  consolidating  these  hues  under  one  central  admin- 
istration so  that  they  can  be  developed  and  operated  as  a  whole  to 
t^e  best  advantage --m  which  arrangement  there  would  be  a  number 
of  very  real  pssibdities  of  obtaining  improvement  in  the  efficiency 
of  both  facdities  and  mmagement.  '   "^ 

In.  suggesting  the  possibSities  along  these  lines  the  witer  has  gen- 
eraUy  been  met  by  the  question:  -that  about  the  attitude  of  the 
omi^rs  of  Ae  W^^^^^  loans  with  which  these  Imes  were 

built  I  ^in  the  past  the  has  been  the  prmcipal  factor  in  preventing 
the  consoklation  of  th«e  lines,  and  this,  together  with  the  claims  of 
the  several  -spheres  of  influence,"  contmues  to  block  (or  at  least 
materiaUy  to  hmder)  the  proper  development  of  the  Chmese  Gov- 
©niment  Railways  m  a  whole.  It  is  obvious,  of  course,  that  there 
niust  be  some  advantage  accruing  to  the  owners  of  these  bonds  to 
incllic©  them  to  agree  to  a  new  arrangement.  To  those  now  m  con- 
trol of  tbe  present  concessions  or  loans,  what  are  the  advantaffes  to  be 
gained  by  assenting  to  such  consolidation  I  In  the  writer's  opmion 
by  proper  consohdation  of  these  lines  the  value  of  these  bonds  will 
be  enhaiiced  rather  than  endangered,  particidarly  by  reason  of  the 

sti  f^tZfLT"^^^  "^  mimuMded  by  spreadmg  it  over  an  exten- 

sive  system,  the  eammgs  of  which  wiU  not  be  materiaUy  affected  bv 
!!fw  ''''f'^T^'    ^  .a^l^jtion,  such  action  would  ssskt  m  further 

railway  development  m  China,  which,  in  turn,  would  again  enhance 

the  security  of  the  present  loans.  ^       «iiiianc© 


COFCLUSIOFS  AND  SUGGESTIONS. 


245 


The  first  table  on  page  53  shows  that  the  investment  assets  of  the 
Chinese  Government  Ilailwavs  total  $406,741,411  Mex.,  not  includ- 
ing the  Kirin-Changchun  Railway,  which  is  a  detached  line  now  under 
Japanese  control,  and  the  Canton-Hankow  line,  which  is  not  yet  com- 
pleted. Interest  charges  on  the  funded  debt  of  these  lines  for  1916 
totaled  $12,258,896  Mex.,  leaving  a  balance  to  net  income,  except 
deduction  for  permanent  Chinese  Government  investment,  of  $20,- 
801,268  Mex.,  or  a  margin  of  almost  170  per  cent  to  meet  interest 
charges  on  funded  debt.  On  lines  north  of  the  Yangtze  River  and 
the  two  Shanghai  lines,  which  can  be  considered  as  a  connected  sys- 
tem, even  a  better  showing  is  made.  This  is  indicated  by  the  first 
subtotal  on  page  53.  The  three  Imes  shown  last  are  aU  disconnected 
but  will  become  part  of  the  connected  system  when  the  Canton-Han- 
kow line  is  completed. 

When  one  comes  to  examine  the  investment  assets  and  the  capital 
liabilities,  it  is  seen  that  the  Chinese  Government  has  a  very  substan- 
tial equity  in  this  group  of  railways.  The  second  table  on  page  53 
is  a  summary  of  the  balance  sheets  for  the  six  most  important  lines 
for  the  year  1916  (except  the  Peking-Suiyuan,  which  is  for  1915). 

The  following  is  a  further  summarizing  of  the  balance  sheets  of 
the  above  lines,  as  of  December  31,  1916,  with  the  1916  report  of  the 
Peking-Suiyuan  line,  which  has  just  been  received,  but  which  makes 
very  little  change  in  the  totals.  This  table  shows  in  the  columns  of 
assets  the  cost  of  the  three  classes  of  permanent  investment  assets, 
and  in  the  column  of  liabilities  it  shows  present  outstanding  capital 
liabilities  and  liabilities  permanently  disposed  of  through  surplus 
earnings: 


Investment  assets. 

Amount. 

Capital  liabilities. 

Amount. 

Cost  of  road  and  equipment: 

reking-Mukden 

Mex.  dollars. 
59,942,844 
25,981,205 
99,803,208 
97,807,19fi 
30,484,417 
21,307,376 

Bonds  and  shares  outstanding: 
Peking-Mukden 

Mex.  dollars, 
19,750,617 

Peking-Suivuan 

Pekmg-Suiyuan 

Tientsin- Pukow 

Peking-Hankow 

Tiontsin-Pukow 

Peking- Hankow 

95,249,974 
58,4.50,.'>83 
29,  ti28, 185 
lS,4a'>,015 

Bhanghai-Nanking 

Shanghai-Hangehow-Ningpo 

Shanghai- Nanking 

Shanghai-Hangehow-Ningpo 

Total 

Total 

335,326,246 

221,490,374 

Permanent  Government  investments: 
Pekine-Mukdcn 

Cost  of  other  physical  property: 

Peking- Mukden 

467.731 

23,903,393 

Peking-Suiyuan 

Tientsin- Pukow 

Peking-Hankow 

Shanghai-Nanking 

Shanghai-Hangehow-Ningpo 

Total 

Cost  of  non physical  assets: 

Peking-Mukden 

Peking-Suiyuan 

Pftkinp-HftiikAw          ,    ,    ... 

57,003 
119,177 

2,491,795 

22,  Wi2, 737 
3,r«9,350 

40,309,381 
3.072,671 
4,980,706 

Total 

2, 667, 975 

99,178,238 

Additions  to  property  through  surplus: 
Peking-Mukden." 

Total  investment  assets 

I  otal  bonds  and  shares  outstanding. . . 

338,461,952 
221,490,374 

11,  l«i.<i57 
2,422,0*'>3 
7  23*^  678 

Pckini'-Siiiv'iiAn 

1  Ixcess  of  investment  assets  over  out- 

116,971,578 

Peking-Hankow 

!>tanding  bonds  and  shares 

Total.. 

Funded  debt  retired  through  surplus: 
Peking-Mukden 

20,  S2S,  39S 

9, 7s4,  «7 
1,519.801 

35:i!i24 

Peking-Suiyuan 

Shanghai-^ianking 

Total 

ll,(j58,392 

Total  capital  liabilities  and  addi- 
tions through  surplus 

353,155,402 

246 


BAIL  WAY  MATERIALS.,  EQUiPAIIiXT,  AXD  SUPPLIES. 


CONCLUSIONS  AND  SUGGESTIONS. 


247 


The  conclusion  to  be  drawn  from  this  table  is  that  in  these  six  lines 

the  Chinese  Govemment  has  investment  assets  of  $116,971,578  Mex., 
not  counting  the  working  assents  and  the  assets  in  the  other  lines,  both 
of  which  Will  add  a  good  deal  in  real  value.  This  equity  .is  being 
added  to  each  year  in  the  amortizing  of  the  wveral  loans. 

The  data  presented  seem  to  warrant  the  suggestion  that,  to  protect 
the  prestmt  bondholders  in  consolidating  these  lines,  a  consolidation 
mortgage  is  one  of  the  practicable  arranffcmonts;  and  through  tliis 
isame  means  the  capital  could  be  furnishecl  to  take  care  of  the  exten- 
sions, betterments,  and  additional  equipment,  which  will  make  these 
railways,  still  better  paying  properties. 

It^  has  been  the  writers  intention  not  to  include  the  Canton- 
Hankow  Railway  (or,  to  give  it  the  correct  name,  the  Hukuang 
Eailways)  in  the  above  suggestions,  for  tlie  reason  that  the  resources 
pledged  for  the  pre^sent  Hukuang  Lines  seem  adequate.  It  appears 
practicable,  however,  to  utilize  the  above-mentioned  equity  in 
obtaining  the  additional  funds  that  will  be  neceasarv  to  comi)leto 
this  line^^-undoubtedly  the  most  needed  additional  line  in  China— 
and  in  doing  so  to  effect  the  consohdation  of  all  the  Chmese  Govern- 
ment Railways  into  one  organic  system. 

The  following  table  shows  the  status  of  the  Hukuang  RaUways  on 
December  31,  1916: 


loTestmwrt  mmts. 

Lialiilitlcs, 

Cofistrtiftlon  (^xpTidit  ores 

'Ftaanrial  e.x'p<'ndituri:s. , . . 

Working  aaaets.. 

JDefcrred  debit  ilcois 

Jftx.  im». 
27,119,3SH 
19,175,97-1 
H,0:i8,24C» 
10,fi»,»9 

TV!  or (.KflRP  Itonds 

t >l h<>r  seciirod  indebted tiess 

Defrf red  credit  items 

Total  obligations , . . . 

Mex.  dom. 
♦".7,32(1,000 

(:62.9oi 

Total  i»«ts ..,....,,.,.. 

67,I«2,,WI 

67, 982, 901 

The  writer,  in  presenting  the  above  suggestions,  appreciates  the 
many  difficulties  that  would  have  to  be  overcome  in  making  the 
proposed  consoMdation.  It  is  felt,  however,  that  this  is  the  treatment 
which  will  result  in  the  greatt^st  t;nd  best  railway  development  in 
China,  when  the  situation  is  considered  as  a  whole,  and  that  the 
Chinese  Government's  equity,  with  the  existing  progress,  renders 
this  the  best  solution  of  a  difficult  situation.  One  of  the  very  sub- 
Btantial  advantages  in  consolidation  •  would  be  'the  rearranging  and 
combining  of  the  present  management  and  the  introduction  of  more 
efficient  administrative  methods.  There  are  also  economies  tliat 
could  be  effected  by  the  joint  use  of  existing  equipment—all  of  which 
are  prevented  by  the  present  restrictions.  The  administration  of  the 
present  Chinese  Govemment  Railways,  so  far  as  the  joint  use  of 
tracks  and  equipment  is  concerned,  is  just  as  strictly  accounted  for  as 
though  the  lines  were  privately  o^med  and  operated. 

PIOGRAM  OF  CONSTRUCTION. 

As  already  explained,  Japan  has  worked  out  a  very  complete  and 

comprehensive  program  of  railway  construction  as  regards  both  the 


additions  to  the  Government  railways  and  the  private  light  rail- 
ways to  be  built  under  the  5  per  cent  subsidy  law. 

With  the  present  restrictions  resulting  from  the  "spheres  of 
influence"  and  the  railway  loan  agreements,  it  is  practically  impos- 
sible for  the  Ministry  of  Communications  to  plan  and  adfopt  any 
comprehensive  program  of  railway  constmction  for  China  as  a  wh.)l(% 
though  there  is  no  doubt  as  to  the  desirability  of  such  action. 
Therefore  one  feature  of  the  suggested  consolidation  of  the  Chinese 
Government  Railways  should  be  the  elimination  of  those  restrictions 
and  the  working  out  and  adoption  of  such  a  program. 

It  is  particulariy  fortunate  that  so  much  of  the  present  mileage 
has  been  built  with  the  standard  ffauge  (4  feet  8|  inches),  and  it  is 
also  fortunate  that  thus  far  there  nas  been  very  little  duplication  of 
facilities  or  building  of  parallel  lines,  though  tne  two  elaborate  sta- 
tions at  Tsinanfu  and  the  three  terminals  at  Peking  show  what 
may  occur  if  the  present  conditions  continue. 

It  is  obvious  tiiat  it  would  be  entirely  beyond  the  scope  of  the 
present  report  to  attempt  to  outline  such  a  program.  Although 
some  construction  programs  have  been  suggested,  such  as  that  by 
Dr.  Sun  Yat  Sen's  Chinese  National  Railway  Corporation,  none  of 
them,  in  the  writer's  opinion,  have  been  based  on  such  an  exhaustive 
study  as  the  correct  solution  of  the  problem  warrants  and  demands. 

Tliere  is  every  reason  why  a  carefully  worked  out  construction 
program  should  be  adopted  and  followed  in  the  building  of  future 
railways  in  China  and  in  the  extensions  and  additions  to  the  present 
lines.  In  deciding  upon  such  a  program  consideration  should  bo 
given  to  the  construction  of  lines  to  develop  the  resources  of  the 
country,  particularly  fuel  and  iron,  and  the  avoidance  of  parallel 
lines  and  lines  paralleling  the  water  transportation  routes.  The 
latter  condition  forms  the  explanation  for  the  lack  of  success  of 
certain  of  the  present  railways,  since  some  of  the  water  transporta- 
tion lines,  especially  some  of  the  native  Chinese  craft,  carry  a  limited 
amount  of  ireight  for  very  low  charges.  A  preliminary  study  of 
the  situation  seems  to  w^arrant  the  statement  tnat  in  most  instances 
lines  could  be  located  to  develop  the  country  fully,  to  avoid  very 
largely  the  paralleling  of  water  routes,  and  still  to  provide  through 
rail  connections  between  the  large  centers  of  population.  It  has 
been  generally  agreed  that  the  completion  of  a  comprehensive  system 
of  railways  in  China  would  do  much  to  stabihze  the  country,  pai*- 
ticularly  in  connection  with  the  suggested  currency  reforms. 

iVfter  the  completion  of  the  text  of  this  report,  the  writer's  atten- 
tion was  called  to  the  study  of  the  development  of  the  Chhiese 
railways  made  by  Mr.  A.  J.  H.  Charignon,  a  French  civil  engineer, 
who,  at  the  time  his  book  was  published,  w^as  employed  as  technical 
adviser  to  the  Ministry  of  Communications.  While  this  study  is 
entitled  a  "Program  of  development"  of  the  Chinese  railways,  it 
impresses  the  WTiter  rather  as  a  very  excellent  reference  w^ork  cover- 
ing the  many  railway  projects  in  China  as  they  stood  at  the  time 
this  study  was  made  (1912  to  1914).     There  is  a  large  amount  of 


useful  and  apparently  very  accurate  data,  particularly  as  to  the 
length  of  the  hues,  'rhe  Chinese  names  (French  vemoii)  are  given 
mth  much  care  and  consistency  in  the  rendering.  There  are  21 
maps  showing  the  various  projects  and  also  a  large  map  of  China, 
The  text  is  in  French,  and  so  far  as  is  known  no  translation  has  been 


lAILWAY  MATEttlALS,  BQITIPM.B:HT,  Alf'D  SUPPLIES. 

made  iii,to  English.    For  anyone  making  a  study  of  the  Chinos© 

railway  situation,  this  publication  affords  much  va,luaHe  di\in.  The 
complete  title  is  as  follows:  'Les  Chemins  de  For  Chinois,  un  pro- 
gramme pour  leur  d'^veloppemeut,  par  A.  J.  H.  Charignon,  ing^niour 
■ciTil,  coiiseiiler  techniciue  au  Ministiire  des  Communications;  H. 
Dunod  &  K  Pioiife,  Witcurs,  47  et  49  Quai  des  Grands-Augu,stin8, 
Pans,  19!  4. 

mAEACTEK  OF  LINES. 

To  the  writer  the  characteristics  of  the  Chinese  lines  to  he  built 

8«m  to  be  a  matter  of  much  importance.  As  stated  several  times, 
most  of  the  present  lines  are  now  at.  a  disadvantage  in  handling  tlieir 
growing  business  on  account  of  their  inability  to  use  as  heavy  motive 
power  as  would  seem  likely  to  be  most  efficient,  considering  that 
m;uch  of  the  freight  tratlic  can  be  move(i  most  economicaily  on  the 
comm,od,ity  basis  (which  means  by  heavy  tonnage  trains  at  com- 
paratively slow  speeds).  One  excepti,on  is  the  Feking-Sui^-uan  line, 
witli  its  heavy  motive  powr  and  freight  einiipment  witli  power 
brakes,  whose  working  .results  compare  TnvoraDly  mih  those  of  the 
O'ther  lines,  not'withstan:ding  the  much  steeper  grades  resulting 'from 
the  rougher  country  through  which  it  passes.  It  is  therefore  felt 
that,  expenditures  for  bridges  earning  much  heavier  loads  than  the 
present  ones  and  for  lines  with  reasonably  low  grades  would  be 
en  ti. rely  wi:rranted  in  the  building  of  future  railways. 

Japan  has  given  careful  study  to  the  characteristics  of  the  lines 
to  be  built.  No  doubt  its  action  will  be  entirely  controlled  by  the 
funds  available,  but  it  can  be  taken  for  granted  that  such  action 
will  conform  to  the  methods  and  princii>les  that  the  Japanese  con- 
sider most  advantageous  for  themst>ly(;'s;  it  will  in  no  way  be  affected 
by  the  results  of  the  conflicting  advice  of  foreign  railway  experts,  as 
has  occurred  'in,  China. 

ROADWAY  AMD  BQ'IJIPMBBIT  STANDARDS. 

Japan  has  the  matter  of  standards  thoroughly  in  hand,  and  any 
American  manufacturer  in  doubt  as  to  what  is  re:,uired  can  obtain 

full  explanation  _from,  the  inspecting  engineer's  office,  in  New  York, 
of  tlie  lm,|ierial  GoTernment  Kail  ways  of  Japan. 

The^  Chinese  Government  Railways,  however,  are  very  far  from 
attaining  this  fortunate  position.  Each  of  the  several  railways 
Clin  be  considered  .as  having  in  many  ways  the  standards  of  the 
nationality  of  its  particular  loan,  and  in  many  respects  these  are 
Guite  different—for  example,  the  frogs  and  switches  used  on  the 
difFereiit  lines.  The  system  of  uniform  accounts  is  an  excellent 
illu8trati<»n  of  what  might  be  accoinplislied  in  stand ai'diziiig  ail  the 
practicas  of  the  ChincM^  Government  liailways  as  to  roadway  ,and 
track,  motive  power,  and  rolling  stock  of  all  classes.  Certain  essen- 
tials could  be  fixed — and  aiternativi^s  allowed  in  other  respects — 
that  would  enable  these^  lines  to  secure  broadly  the  benefit  of  inter- 
national markets,  particularly  as  regards  the  price  competition  that 
would  thus  ensue.  No  doubt  direct  benefit  would  result  to  the 
Chinese  railways  if,  in  the  adoption  of  .such  standards,  special  con- 
sideration were'  given  to  the  devices  that  can  now  or  may  in  the  future 
be  m,jiiiufactiired  in  China  at  such  places  m  the  Tangshan  shops. 


CONCLUSIOFS  AND  SUGGESTIONS. 


249 


As  an  example,  one  may  mention  33-inch  chilled  cast-iron  car  wheels 
similar  to  those  now  'being  manufactured  at  the  Shakako  shops 
and  used  as  standard  on  the  freight  equipment  of  the  South  Man- 
churia Railway,  where  the  conditions  and  traffic  are  probably  fully 
representative  of  the  future  developments  on  the  Chinese  Govern- 
ment Railways  as  a  whole.  If  wheels  of  this  diameter  and  material 
are  satisfactory  for  the  service  of  the  South  Manchuria  Railway  (as 
they  apparently  are),  it  would  appear  that  this  should  be  permissible 
practice  to  meet  the  requirements  of  the  Chinese  Government  Rail- 
ways, in  view  of  the  fact  that  this  is  the  type  of  wheels  that  could  be 
manufactured  to  best  advantage  in  China  at  such  points  as  the 
Tongshan  shops  on  account  of  the  Chinese  workman's  adaptability 
for  handling  this  class  of  work. 

FINANCING  EXTENSIONS  AND  BETTERMENTS. 

It  is  felt  that  the  foregoing  data  warrant  a  repetition  of  the  state- 
ment that  one  of  the  big  problems  in  Chinese  railway  development  is 
the  providing  of  funds  for  extensions,  betterments,  and  additional 
terminal  faciEties  and  equipment  as  the  business  of  the  roads  grows. 
These  remarks  apply  even  to  the  profitable  lines,  especially  where  a 
considerable  part  of  the  original  construction  funds  is  amortized  in 
the  first  25  or  30  years.  FuU  provision  for  these  requirements  of  the 
Chinese  Government  Railways  appears  to  the  writer  to  be  one  of  the 
problems  of  the  consolidation  suggested. 

There  seems  to  be  little  occasion  to  comment  on  this  situation  in 
connection  with  Japanese  railways.  The  Japanese  Government  can 
doubtless  secure  such  funds,  to  a  reasonable  amount,  as  it  elects  t^ 
expend  on  the  Government  lines,  and  the  funds  for  the  construction 
of  the  subsidized  private  Hght  railways  and  tramways  will  be  forth- 
coming from  private  investors  or  the  interested  municipalities. 

BUYING  ADDITIONAL  EQUIPMENT. 

In  view  of  the  small  amount  of  rolling  stock  that  the  Chinese  Gov- 
ernment Railways  now  have  for  the  handling  of  their  traffic  and  the 
immediate  need  of  additional  equipment  to  take  care  of  their  growing 
business,  it  appears  to  the  writer  that  there  exists  an  excellent 
opportunity  for  American  interests  to  furnish  a  considerable  quantity 
of  roUing  stock,  to  be  financed  through  the  medium  of  equipment 
trust  certificates,  along  the  same  general  lines  that  have  been  fol- 
lowed in  connection  with  the  American  railways  for  many  years. 
The  writer  discussed  the  possibilities  of  such  an  arrangement  with 
representatives  of  the  Ministry  of  Communications  and  the  officials 
of  some  of  the  Hues  that  need  additional  equipment,  and  in  each 
instance  they  were  very  receptive  to  the  suggestion.  The  need  of 
such  additional  equipment  is  shown  by  the  table  on  page  76. 

KIND  AND  AMOUNT  OF  EQUIPMENT  NEEDED. 

At  the  risk  of  repetition,  it  is  felt  that  the  situation  warrants  the 
statement  that  additional  freight  equipment  in  general  should  be  of 
large  hauling  and  carrying  capacity,  that  it  should  be  provided  with 
power  brakes,  and  that  there  should  be  a  continuance  of  the  use 
of  automatic  couplers  constructed  with  robust  draft  rigging  for  the 


RAILWAY  IIATIBIALS,  BQUIPMEHT,  .ASB  SUPPLIES. 

handling  of  heavy  tonnage  trains  over  moderately  long  distances.  It 
IS  not  probable  that  the  hauls  in  China  will  equal  those  in  America, 
hut  m  all  Drobahihtj  the  average  future  haul  in  China  will  considera- 
Wy  exceed  the  average  in  most  other  countries  and  much  of  the 

busin«s.  'Will  be  done  on  a  co:mmwiity  basis. 

It  is  quite  impossible  to  state  the  amount  of  equipment  that  will 
be  needed,  but,  with  the  car  efficiency  now  obtained,  it  seems  reason- 
able to  aasume  that  the  Chmeee  .railwa>is  w,ill  not  need  m.  amount  of 
eqiiipment  equal  to  that  nettled  in  the  United  States.  However  as 
*^"' haul  ^ '--"^ --  '     *'  ■■       ■•  ■      


becomes  longer  (as  it  has  been  steadily  doing)  and  as  the 
business  grows  it  is  hanlly  likely  that  the  present  car  efficiency  will 
be  maintained  .^^  /Therefore,  it  is  probable  that  a  very  considerable 
amount  of  additional  rolling  stock -^especially  freight'care  and  loco- 
motives—will  be  required,  but  that  this  will  not  be  equal  to  that  on 
American  railwaj-s  handling  an  equal  amount  of  business.  One  ele- 
ment that  has  helped  the  Chinese  lines  and  probably  w,ill  continue  to 
<Ic>  so  is  the  supply  of  labor  available  in  all  parts  of  China  which 
makes  it  cheaper  to  unload  ears  and  store  the  materials  than' to  pav 
the  present  high  car-demurrage  rates. 

The  actual  carrying  capacity  of  the  freight  cars  on  the  six  Chinese 
Ciovernment  Radwa}^  shomi  by  the  table  on  page  76  is  79  tons 
(of  2.00,0  pounds)  per  mile  of  line,  While  the  average  earning  capacitv 
on  the  .American  railwa^-s.  is  404  t.ons  per  mile  of  line^-  that  is  the 
,Am,e:rican  railways  have  m,ore  than  five  times  as  much  freiffht-carrr- 
mg^  equipment  as  the  Chinese  Government  'Railways. 

Mo  comments  are  made  in  this  connection  regaixiing  the  Japanese 
railways,  since  they  are  steadiv  addmg  to  the  equipment  of  all  their 
lines,  inchiding  the  South  Manchuria  and  Korean  railways.  In 
Manchuria  and  Chosen,  however,  this  equipment  is  along  tie  lines 
above  suggested  for  the  Chinese  Government  Railways.  In  Japan 
proper  it  can  be  generaMy  described  as  the  goods-wagon  tvpe  of  eouin- 
ment,  m  iMustra'ted  in  figure  38.  »       ^  i  u    i 

WORK  EQUIPM'ENT  KEEDE©. 

The  term  ''work  equipment'^  is  used  as  applving  to  construction 
plant  and  maintenance  and  wrecking  equipment.  The  lines  in  both 
Japan  and  Chiiia  have  very  little  of  this  class  of  equipment,  as  one 

sees  It  m  America.  Hie  principal  reason  has  been  the  large  supply 
of  cheap  labor  alwajns  avadable  for  handling  work.  It  has  been  con- 
sidered cheaper  to  do  all  work  by  hand  than  to  employ  expeditinjj 
and  labor-saving  machmery;  and.  in  addition,  the  time  element  hiw 
not  heretofore  been  considered  sufficiently  vital  to  offset  the  cost  of 
the  expediting  plant.  During  the  past,  iii  the  Far  East,  time,  after 
clieaj)  labor,  has  been  the  most  abundant  commodity;  therefore  a 
few^days,  weeks,  months,  or  yeara  more  in  the  constmction  of  tlu^ 
lii'oject^  was  not  of  the  same  moment  as  the  direct  cost.  Modern 
iiiethods,  liowever,  are  being  given  greater  consideration,  and  expe- 
clitnig  machinery,  winch  is  also  labor  saving,  is  beginning  to  come 
into  use  m  many  wajrs.  There  mill  be  a  growing  use  of  this  class  of 
equipment  on  the  railways  m  both  Japan  and  China,  The  recent 
expansion  of  all  kinds  of  industry  in  Japan  has  produced  a  sliortage 
of  labor  m  many  connections,  particularlv  on  the  railways,  where 
lower  wages  are  paid  than  .in  almost  any  othei*  mdustry.  . 


co:n"clusions  and  suggestions. 


A  typical  example  of  the  employment  of  construction  plant  equip- 
ment is  the  use  of  10  or  15  large  steam-road  rollers  on  the  street- 
improvement  work  in  the  city  of  Peking.  Their  use  was  due  not 
so  much  to  the  low  unit  price  of  the  worn  as  to  the  expedition  and 
quality  resulting.  They  were  used  in  spite  of  the  large  amount  of 
clieap  labor  in  this  section  of  China.  The  growing  interest  charges 
on  some  of  the  large  undertakings  will  no  doubt  have  much  to  do 
with  tlie  use  of  construction  machinery.  An  excellent  illustration 
of  this  is  a  large  reinforced  concrete^  olTice  building  being  con- 
structed in  Tokyo  by  hand  methods;  it  is  taking  three  times  as  long 
to  erect  this  structure  as  would  have  been  the  case  with  a  well-arranged 
construction  plant.  This  means  that  the  construction  interest- 
carrying  charges  were  probably  more  than  doubled  and  that  the  income 
was  lost  for  this  period — ^more  than  offsetting  any  possible  saving  by 
reason  of  the  cheap  labor.  This  point  is  being  recognized  by  the 
Japanese  engineers,  and  it  is  also  well  known  to  the  foreign  and 
Chinese  engineers  in  China. 

WHARF  AND  HARBOR  EQUIPMENT. 

Tlie  foregoing  remarks  apply  to  the  handling  of  cargo.  At  present 
it  is  surprising  how  expeditiously  the  work  is  done  at  some  points, 
particularly  the  taking  of  bunker  coal  at  Nagasaki  and  the  handling 
of  cargo  coal  at  Dairen  and  Chinwangtao.  Recently,  however,  the 
labor  shortage  has  been  serious  at  times  at  Nagasaki.  In  the  course 
of  time  witli  increased  shipments  the  consideration  of  quantity 
handled,  rather  than  of  cheapness,  will  probably  be  of  primary 
importance  in  such  situations  as  those  at  Dairen  and  Chinwangtao 
and  in  connection  with  the  handling  of  iron  ore  at  Ilwangchow  and  of 
fuel  and  ores  at  the  Han-Yeh-Ping  iron  and  steel  plant.  At  the  last- 
mentioned  place  there  is  already  in  course  of  construction  an  unload- 
ing outfit  for  the  handling  of  ore  and  fuel  from  the  barges  in  which 
they  are  transported  from  the  mines. 

SHOP  MACHINERY  AND  TOOLS. 

The  Japanese  railways  have  given  this  subject  careful  study,  and 
their  shops,  as  a  rule,  are  equipped  with  well-selected  machines  and 
tools,  a  large  percentage  of  which  are  from  American  sources,  although 
much  equipment  is  also  of  British  and  German  manufacture  and  a 
growing  percentage  is  of  Japanese  manufacture.  The  Japanese  are 
very  alert  and  are  increasingly  appreciative  of  the  benefit  of  the  best 
equipment  along  these  lines,  lliey  will  doubtless  keep  close  watch 
on  American  developments,  and,  in  all  probability,  this  will  continue 
to  be  one  of  our  best  fields  in  the  Japanese  railway  markets,  particu- 
larly on  account  of  the  special  adaptability  of  many  American  prod- 
ucts. American  machinery  and  tool  manufacturers  are,  as  a  rule, 
well  represented  in  Japan  either  by  American  concerns  or  by  the 
strong  Japanese  comniercial  and  engineering  companies  already 
referred  to  several  times.  The  writer  had  noticed  the  extensive  use 
of  certain  tools  in  Japan,  and,  in  a  conversation  with  a  representative 
of  one  of  the  American  manufacturers,  the  latter  expressed  wonder 
a-s  to  what  the  Japanese  did  with  all  the  tools  they  were  buying,  in 
view  of  the  large  supply  of  cheap  labor  that  he  understood  to  be 
available.    Upon  an  explana  lion  of  the  factors  of  expedition  and  quan- 


252  KAILWAT  KATEKIMiS,  EQOTFMEFT,  AKD  S'OTPLIES, 

tity  of  podoct  re'qii,ired,  he  stated  that  he  had  not  appreciated 

those  points.,  ^^ 

Outside  of  the  South  Manchuria  Railway  shops  at  Shakako  and 
to  a^oertain,  extent  the  Taafshan  and  Harhin  workshops,  the  railways 
m  Uuna  are  rather  inacleqiiatelT  equipped  with  expediting  and 
labor-saving  machinery  and  tools.'  Much  of  the  present  equipment 
IS  of  Amencaii,  nianufacture,  even  on  the  lines  huilt  with  British, 
Freiwh,  and  Befaan  loans,  but  in  the  German-built  shops  nothing 
but  German  machinery  has  been  used.'  ' ' 

With  the  limited  equipment  and  the  preasure  of  growing  business 
the  present  slow  hand  methods  of  doing  much  of  the  work  have 
proTed  unsatisfactory— not  from  the  standpomt  of  cheapness  but 
because  they  keep  Muipment  out  of  service  when  it  is  badfy  needed. 
A  typical  case  of  this  is  the  boOer  repairs  to  the  large  locomotives  in 
use  on  the  Peking-Suij^an  Railway,  which  are  held  out  of  service 
almost  twice  as  long  by  reason  of  the  hand  work  as  they  would  be  if 
the  rcpan-s  were  eiected  'with  a  full  complement  of  compressed-air 
working  tools.  Therefore,  notwithstanding  the  cheap  and  capable 
labor,  tTiere  should  be,  and  nrobably  will  be,  a  growing  demand  for 
shop  took  m  the  Chines©  Government  •Railway  workshops. 

ILBCf MFIEB  UGHT  RAILWAYS"  AND  SHOirr-LINE  TRAMWAYS. 

Tlie  data  shown  regarding  the  electric  tramways  in  Japan  and  the 
profits  resulting  from  the  Hongkong,  Shanghai,  and  Tientsin  electric 
tramwavs  seem  to  the  wnter  to  warrant  the  statement  that  electrified 
light  rai  ways  (or  what  are  called  interurban  railways  in  America) 
*^!  >^  l"gWy  profitable  in  China  if  operated  and  managed  with 
abiity  In^many  instances  tliere  wouM  be  a  combmation  of  city 
iiid  interurban  lines.  The  writer  also  beheves  that  if  such  Hues  ^ 
the  Sunning  Railway,  the  Canton-Samshui  line,  the  Swatow^Chao- 
chow  MailwaY,  the  Changchow-Amoy  line,  and  the  Kiangsi  Rail- 
way, instead  of  bemg  operated  as  steam  raHways,  were  ^ectrified 
and  would  do  an  interurban  business,  they  would  show  much  better 
working  results.  This  is  particularly  true  of  the  last  three,  which 
are  now  fhoAing  losses  instead  of  profits;  but,  in  view  of  their  small 
amount  ot  freight  business,  it  is  also  very  probable  that  the  fii-st  two 
lines  womd  show  better  results. 

Railway  construction  in  the  congested  districts  of  China  will  be 
expensive^  in  any  event,  but  the  light  electrified  hues  would  be 
considerably  easier  to  locate,  and  this  wo'uld,  in  a  measure,  offset 
the  increased  cost  of  electrification.  A  plan  according  to  which  tha 
trunk  lines  and  branches  handling  freight  would  be  built  as  steam 
railways  and  the  short-travel  passenger  railways  and  the  hght  rail- 
ways as  electric  lines  has  much  to  conunend  it  as  one  of  the  arrange- 
ments to  be  adopted  in  a  program  of  railwav  construction  for  Chma 
as  a  whole  ospeciafly  in  view  of  the  avaifable  data  showing  that 
dectrihed  hght  railway  wo'uld  probably  be  more  profitable  than 
steam-operated  light  railways. 

lllGANKATIOlf  AMD  .METHODS  OF  OPERATION, 

While  the  distinctly  deipartmental  organization  and  the  strictly 
Btation-maator  method  of  operation  may  impress  representative 


CONCLUSIONS  AND  SUGGESTIONS. 


253 


of  American  concerns  doing  business  with  the  Chinese  and  Japanese 
railways  as  not  being  the  best  arrangement,  it  is  the  writer's  opinion 
that  the  conditions  are  such  that  both  these  situations  must  be 
accepted.  Business  slioidd  be  done  with  these  railways  along  these 
lines,  particularly  when  it  is  a  question  of  specifications  or  equip- 
ment (though  this  will  seldom  be  the  case  outside  of  such  mattei-s  us 
those  involving  signaling  and  train  dispatching).  It  may  l)e  true 
that  by  these  methods  the  Far  Eastern  fines  do  not  move  traffic  with 
the  same  speed  as  the  American  roads,  but  to  do  so  they  would  be 
obliged  to  take  a  greater  amount  of  risk  on  account  of  the  class  of 
men  with  which  they  have  to  operate  these  railways. 

FOREIGN  EXPERTS  IN  CHINESE  RAILWAY  SERVICE. 

Tf  the  scheme  of  consolidation  previously  suggested  were  to  be 
effected,  there  is  no  doubt  that  this  should  be  done  under  experienced 
foreign  direction,  possibly  similar  to  the  present  administration  of 
the  Salt  Gabelle  or  the  Chinese  Maritime  Customs.  Such  a  necessity 
would  probably  be  recognized  by  the  most  advanced  of  the  Chinese 
railway  men.  As  illustrating  tliis,  the  view  of  Dr.  C.  C.  Wang,  the 
present  head  of  the  Peking-Hankow  Railway,  as  expressed  in  the 
Chinese  Social  and  Political  Review  and  reprinted  in  the  December, 
1917,  issue  of  the  Far  Eastern  Review,  is  quoted  as  follows: 

Experience  has  shown  evetywhere  that  railways  mnet  be  managed  by  experts. 
The  problems  of  railway  administration  are  so  numerous,  the  effects  so  far-reacning, 
the  organization  and  working  so  complex,  that  it  is  only  experts  that  may  be  al)le  to 
develop  the  railways  properly.  It  may  be  generally  said  that  one  of  the  greatest 
needs  of  the  railways  in  China  is  expert  service.  A  few  facts  may  help  to  show  the 
needs. 

We  all  know  that  in  dealing  wdth  foreigners  we  have  lost  in  many  cases  in  the  matter 
of  railwa}'s.  This  perhaps  was  not  dne  so  mnch  to  the  aggression  of  our  foreign  friends 
as  it  was  to  the  fact  that  they  were  experts  while  we  were  not.  They  knew  what  they 
talked  about,  but  we  sometimes  did  not.  When  our  layman  representatives,  who  had 
no  intimate  knowledge',  met  the  foreign  experts  who  knew  every  conier  of  the  ques- 
tion, it  might  have  been  expected  that  our  men  lost  out. 

It  is  due  to  the  same  lack  of  experts  in  China  that  we  have  to  employ  many 
foreigners  in  our  railway  service  at  a  great  cost.  The  fact  that  we  have  had  considenil  de 
trouble  in  dealing  with  some  of  our  foreign  employees  may  lie  traced  to  the  same 
cause.  To  ameliorate  the  situation  we  must  first  of  all  train  up  our  own  experts, 
IMherwiee,  any  attempt  to  relieve  our  foreign  assistants  will  be  suicidal.  In  fact,  we 
need  more  real  foreign  experts  selected  by  ourselves  for  special  M'^ork,  who  should  he 
willing  to  work  disinterestedly  for  the  country  and  reatly  to  afford  our  young  men 
every  opportunity  to  learn.  By  this  process  in  a  few  years  we  shall  have  our  own 
t'xperta.  But  the  fundamental  requirement  for  training  up  our  own  experts  under  our 
fi'teign  employees  or  under  any  other  system  is  that  there  must  first  of  all  be  adopted 
an  impartial  and  effective  system  for  selecting  the  young  men  to  begin  with,  a  fair 
piotection  against  the  influence  of  the  politicians  and  cliques,  and  a  stable  and  well- 
defined  service  that  will  permit  the  men  to  work  long  enough  to  learn  the  busineau. 

Substantially  this  same  view  is  expressed  by  some  of  the  other 
most  progressive  Chinese  railway  officials.  For  the  present  foreign 
experts  in  the  capacity  outlined  by  Dr.  Wang  are  necessary  in  the 
further  development  oi  the  Chinese  railways. 

At  present  there  are  no  foreign  experts  in  the  employ  of  the 
Japanese  railways.  The  Japanese  will  probably  continue  their  present 
l)ractice  of  mating  such  investigation  and  study  of  other  railway 
methods  and  equipment  as  they  think  necessary,  and  then  applying 
their  conclusions  m  their  own  way. 


254  :ilAttWAY  MATERIALS,  BQUIPMEMT,  AMD  SUPPLIES. 

ICMiIiDf G-Sf  IICK,  SPECIFICATIONS. 

TIio  matter  ^  of  rolling-stock  specifications  is  considered  at  some 
length,  beginniiM?  on  page  77.  In  this  place  it  is  only  necessary  to 
say  thiit,  with  the  conditions  now  prevailing  and  nntil  such  time  as 
the  Monstry  of  Communications  adopts  definite  specifications,  it  is 
cpiite  proper  (and,  m  fact,  advisable)  for  American  manufacturers 
to  put  foi-ward  propositions  conforming  in  general  to  American  speci- 
liciitions  for  equipment  to  bo  funiislio'd  to'"  the  Chinese  Government 
KiilwaTO;  advantage  should  be  taken  of  such  points  as  tyiie  of  engine 
frame,  but  such  nonessentials  as  tTOo  of  boiler  and  fire-box  ma.terials 
can  be  conceded.  This  suggestion  is  made  for  the  reason  that  in  th,e 
writer's  opinion,  the  beat  interests  of  the  Chinese  Government  Rail- 
ways Will,  be  served  by  the  use  of  rolling  stock  along  the  lines  of 
American  practice.  In„quiries  from  Japan  will  no  doubt  give  very 
dehnite  and  detailed  specifirations  as  to  what  is  wanted. 

00NT:EACT,ING  AND  CONSTieCTION  PLA,NT. 

General  con^t^acting  so  far,  in  the  construction  of  Chinese  railways. 
Has  been  largt^hr  an  arrangement  ta^keii  care  of  by  the  railway  loan 
agreements.  The  construction  corporation  of  the  loan  syndicate 
as  a  rule,  has  bought  the  necessart  materials  and  equipment  and  iii 
general  handled  the  construction  work— usuailv  with  a  small  amount 
of  instruction  plant.  In  m.any  instances  the  work  has  been  sublet 
to  Chinese  contractora  (generally  local  parties)  and  the  work  divided 
into  small  amounts;  also,  it  is  usually  separated  as  between  gradino- 
foundation  and  culvert  work,  and  station  builcUngs.  It  is  probable 
that  much  of  the  work  in  the  futui-e  will  be  so  constructed^  There 
axe  certain  hnos  project.oii  howov(>r,  some  parts  of  which  will  pass 
throurfi  somewhat  sparsely  settled,  rough  country,  and  the  reduc- 
tion of  the  time  element  would  appear  to  warrant  the  statement 
t  lat  certain  expediting  construction  plant  probably  will  be  used  in 
the  future. 

If  the  gauge  of  the  Imperial  Government  Eailways  of  Japan  is 
wideMd  to  4  feet  SJ  inches  along  tlie  lines  of  a  general  reconstruc- 
tion, there  wil,i  be  need  of  very  much  more  constraction  plant  tlian 
has  previously  been  used,  and  the  execution  of  the  work  in  the 
reduced  time  now  estimated  would  require  some  intensive  construc- 
tion plant  along  the  .lines  of  American  practice. 


CONCLUSIONS  AND  SUGGESTIONS. 


255 


IIHIGE  AND  BUILBING  MATEEIA,LS. 

f  riflge  materials  for  the  Chinese  Government  Railwaj-s  thus  far 
have  f'leen  largely  furnished  by  the  loan  interests  or  from  the  Shan- 
haikwan  bridge  works  of  the  Pekiog-Mnkden  K^aOway.  In  general 
the  specifications  have  confoi'ined  to  the  practice  of  the  nation 
responsible  for  the  loan.  For  recent  construction  and  replacement 
however,  a  good  many  bridges  liave  been  o!>tained  fi'om  Amencan 
sources.  'rh,is  is  particulariy  tlie  case  with  the  new  work  on  the 
CiMi ton-Hankow  Ime  and  the  replacement  on  the  Pekin<^-Hankow 
Ime  of  bridges  lost  in  1917.  "^ 

Chinese  and  Japanese  materials  have  ordinarily  been  used  for 
substmctures  and  station  building  in  both  countries  There  are 
numbers  of  cement  plants  in  both  China  and  Japan.    Brick  and  tile 


are  made  in  considerable  quantities  in  many  localities.  The  result  ia 
that  little  material  is  required  from  the  outside,  except  where  rein- 
forced concrete  is  used;  this  is  being  employed  to  an  increasing 
extent,  but  up  to  the  present  time  the  worK  lias  usually  been  done 
by  hand,  except  for  tne  mixing  machines,  which  are  considerably 
used. 

COAL  AND  WATER  STATIONS. 

The  storage  of  both  coal  and  water  is  along  the  very  simplest  lines 
in  both  China  and  Japan.  Very  httle  labor-saving  or  expediting 
equipment  is  used.  In  locomotive  coaling  and  taking  water  the 
locomotives  are  always  uncoupled  from  the  tragi's.  Very  little  water 
treatment  apparatus  has  been  installed  thus  far,  but  as  a  rule  the 
water  is  "fair  to  good"  for  locomotive  use  in  both  comi tries.  In 
China  and  Manchuria  a  good  deal  of  the  water  carries  considerable 
material  in  suspension,  wliich  can  be  removed  by  filtration. 

COMMODITY  HANDLING  PLANTS. 

Coal  and  all  other  similar  commodities  being  so  largely  handled  by 
hfind,  there  is  very  little  plant  for  handling  or  storing  by  mechanical 
methods.  This  also  applies  to  the  handling  of  agricultural  products, 
most  of  which  are  handled  in  boxes  or  packages  made  from  matting. 
Rice  is  generaOy  handled  in  what  may  be  termed  matting  packages. 
Tlie  Japanese  authorities  have  given  a  good  deal  of  study  to  the 
handling  of  soya  beans  in  Manchuria  by  elevators,  but  so  far  no 
installations  have  been  made,  though,  with  the  advantages  of  drying 
and  cleaning,  it  appears  that  tins  could  be  done  with  consideralrle 
benefit.  The  same  remarks  apply  to  the  handling  of  both  beans  and 
wheat  at  Vladivostok  and  Harbin, 

KAIL  AND  FASTENINGS. 

Normally  the  Japanese  railways  are  supposed  to  obtain  their  supply 
of  rail  and  fastenings  from  the  Iniperial  Japanese  Steel  Works  and 
the  IMnese  railways  from  the  Efan-Yeh-Ping  Steel  Works,  but, 
bc^cause  of  tl\p  demand  for  the  products  of  these  plants,  considerable 
(luantities  of  rail  and  fastenings  have  been  obtained  from  other 
sources.  Japanese  railways  recently  obtained  a  considerable  quan- 
tity of  rail  from  the  steel  mills  in  Colorado.  The  Chinese  standard 
S.">-pound  rail  section  and  details  of  fastenings  are  shown  on  page  75. 
Tlicr©  is  a  decided  opportunity  for  the  use  of  rad  anchors  (anti- 
cieepers)  on  many  of  the  Chinese  railways.  All  rad  anchors  used 
thus  far  in  both  countries  have  been  largely  from  American  sources, 
although  in  Japan  the  practice  is  quite  extensive  of  using  second- 
IkuuI  ties  set  on  end  to  anchor  the  track. 

CKOSSTIES  AND  TIMBER. 

One  of  the  great  problems  of  railway  construction  and  maintenance 
in  China  will  be  the  supply  of  suitable  cross  ties.  The  table  on  page 
T.'-i  shows  the  life  of  most  timbers  to  be  comparatively  short  and  the 
<*nst  high.  In  the  writer's  opinion,  a  special  steel  or  other  similar 
type  of  cross  tie  will  provide  the  solution  of  this  difficult  v.  One  of  the 
conditions  that  wOl  assist  in  the  success  of  special  tract  cons  true  tion 


256 


lAttWAT  MATERIALS,  EQ,mPMENT,  ANB  SUPPLIES, 


ill  Chiim  is  the  large  supplv  of  tlie  cheap  and  capable  labor  required 
t^'C^S"^  ""^  mainteoa.ce,  particulady  when  Lavy 

Thfi  supply  of  tiniber  in  Oiina  is  smal  and  the  price  very  hiffh 
«id  the  present  growing  practice  of  using  reinforced  concrete  lor 
8ta   on  curbing    Hiforaation  signs,  fence  posts,  and  many  similar 
requirements  wdl  no  doubt  be  further  extended  on  all  the  lines 

FENCING  MATERIALS. 

feS'^c/'rl*'^!7  ^T^^^n^  particularly  in  the  agricultural  aree^, 
fen^g  M  an  mpracticabie  luxury  m  China,  but  in  urban  district^ 
considerable  stractures,  rather  than  fences,  are  at  time^  built  along 
the  milways,  and  the  practice  is  rather  to  thus  inclose  the  railwai 
m  the  cities  and  towns  than  to  fence  them  tlirough  the  country  In 
som^e  ciLses  Aniencan  fencing  materials  hare  been  used,  and  thei*r  use 
could  be  extended  to  much  advantage,  especially  materials  for  very 
robust  feric€  posts  and  also  special  spiral  wire  for  the  country  fencing, 
a  little  of  this  latter  having  been  used  heretofore. 

PMOGs  AND  swrrcHEa 

While  the  frogs^  and  switches  have  conformed  in  the  mam  to  the 
pract«;e  of  the  builders,  the  tendency  for  new  work  and  maintenance 
l^JZ  '?**rf^  *Jrg  ^^"^  genenilline  of  practice  that  is  becoming 
common  in  both  Chma  and  Japan,  representing  what  might  be 
termed  a  compromise  between  British  and  American  practice  Thus 
far  only  a  few  special  hardened  parts  have  been  used;  but  the  grow- 

Z  «xT«f«i™  ,^*^^^\^'^^^  Japanese  railways  will  w^rant 

the  extensive  use  of  such  material,  for  which  their  track  work  is  well 

adapted. 

A  very  miscellaneous  assortment  of  deraOs  is  used  in  both  coun- 
tries; most  of  these  are  homemade  devices  or  manufactured  in  the 
railway  s  own  workshops.    A  good  example  is  sliown  in  figure  21 

Ji'lf;^^™*  A  ^^^1  ""^  ^^^?^  r^^  ^  ^««^  i^  b«^h  countries  to 
advantage.    A  good  many  derails  are  used,  and  there  seems  to  be  a 

growmg  tendency  to  provide  additional  protection  in  this  connection. 

BOADWA¥  AND  THACK  TOOLa 

A  study  of  the  roadway  and  track  tools  in  use  on  the  railways  in 
China  would  constituto  something  of  an  education  on  this-suftect 

Nearly  everything  that  the  writer  ever  heard  of  was  to  be  fouK 
use  m  one  place  or  another.  With  the  similarity  of  conditions  on  a 
larffe  percentage  of  the  lines  and  with  the  stone  ballast  America^ 
tools  are  in  general,  well  adapted  for  construction  and  maintenance 

rtnl^^'A^^^'T  ""^T-    '^^y  ''^  «^^^  '^'^  to  the  railways 

L.1  T  L*L    ^^''^f  •°**1I  American  roadway  and  track  tools  are 

used  m  both  countries   tUugh  there  is  a  decided  tendency  for  Zl 

Japan«e  now  to  manufacture  their  own  tools.  '         "^ 

SIGNALS  AND  TBLEPHONEa 

.J!'3  *^®  ^"^f  amount  of  really  modem  signals  and  central  train- 
control  apparatus  now  installed,   there  is  every  reason  why  ^e 


CONCLUSIONS  AND  SUGGESTIONS. 


257 


simpler  three-speed  American  method  of  signaling  and  selective  tele- 
phones to  direct  present  train  working  should  be  adopted  in  both 
Japan  and  China.  This  could  be  done  with  benefit,  particularly  to 
take  care  of  the  growing  traffic,  which  will  necessitate  increasing  the 
traffic  capacity  of  these  railways  from  time  to  time. 

OILS  AND  STORAGE. 

Burning  oils  and  lubricants  in  China  are  largely  from  American 
sources.  In  Japan  much  of  the  higher-grade  lubricating  material  is 
of  American  manufacture,  but  a  considerable  amount  of  the  lubri- 
cants, esnecially  the  cheaper  materials,  are  from  Japanese  sources. 
This  condition  also  obtains  in  South  Manchuria  and  Chosen. 

There  is  a  variety  of  arrangements  for  storing  and  distributing  the 
oils,  but  in  only  a  few  cases  are  the  best  modern  methods  employed. 
As  all  oils  are  expensive  in  China,  improved  apparatus  could  be 
adopted  in  many  instances  so  as  to  show  a  good  return  on  the  invest- 
ment. 

BUSINESS  METHODS. 

Much  might  be  said  regarding  the  best  ways  of  conducting  business 
in  China  and  Japan,  particularly  regarding  the  much-discussed 
Chinese  "comprador"  method.  The  conclusion  was  reached,  how- 
ever, that  this  method  has  little,  if  any,  effect  on  the  business  of 
handling  railway  equipment. 

The  writer  is  strongly  of  the  opinion  that  experienced  application 
and  commercial  engineers  are  necessary  for  the  most  successful 
handling  of  railway  business  in  China  and  Japan,  as  is  the  case  in 
handling  these  markets  in  all  parts  of  the  world.  There  have  been 
and  wilTbe  special  conditions  to  be  met  and  problems  to  be  solved  in 
both  of  these  countries,  and,  without  question,  the  obtaining  of  busi- 
ness can  best  be  followed  up  by  experienced  engineers  on  the  ground 
who  will  be  able  to  make  the  best  application  of  available  apparatus. 

REPRESENTATION. 

The  question  of  representation  is  admittedly  one  of  much  impor- 
tance. In  Japan,  at  present,  there  are  a  number  of  well-organized 
American  concerns  representing  American  manufacturers;  most  of 
these  have  Japanese  employees  who  are  technically  famifiar  with  the 
products  handled.  The  several  strong  Japanese  commercial  and 
engineering  companies  usually  represent  a  number  of  American 
manufacturers  for  the  sale  of  railway  materials,  and  as  a  rule  these 
concerns  have  a  well-organized  technical  staff.  In  addition  there 
are  a  number  of  large  American  manufacturers  who  have  established 
branch  plants  in  Japan.  Much  has  been  said  concerning  the  advan- 
tages of  these  different  arrangements,  and,  on  the  other  hand,  there 
has  been  considerable  criticism  of  each  of  the  last  two  methods  as 
not  being,  in  the  long  run,  to  the  best  American  interest.  The  writer 
inclines  to  the  opinion  that  it  is  quite  desirable,  in  any  event,  for 
American  interests  to  retain  control  of  the  business  in  some  form,  and 
the  first  of  the  above  arrangements  has  much  to  commend  it,  espe- 
cially in  view  of  the  fact  that  there  are  at  present  a  number  of  well 
equipped  American  concerns  for  handling  the  business. 

106229"— 19 ^17 


258 


BAmWAT  MATBEIALS,  EQUIPMENT,  AND  SUPPLIES. 


In  CliiB,.a,  a-side  !mm  the  Han-Yoli-PiFig  Co.  and  the  railways'  own 
worksliops.,  there  are  very  few  strictly  Chinese  concerns  handling 
railway  Wsiness.  There  is,  liowever,  a  considerable  variety  of  com- 
mercitd  concerns  in  China  representing  American  manufacturers  of 
railwiiy  materials.  Some  of  tiiese  are  of  strictly  American  interests, 
hut  few  are  fully  staffed  with  Americiu,is,  although  several  are 
approximfttely  so,  especially  as  regards  the  technical  staff.  Sooie  of 
the  other  concerns  are  mixed  aa  to  interest,  nat.ionality  of  concerns 
represented,  and  nationalitv  of  staffs  (particularly  the  technical 
fltoffs).  It  i,s  felt  by  the  writer  that  American  interests  and  also  the 
eust.omer's  interests  would  he  best  served  through  the  rejjresentation 
of  Am,erican  manufacturer  by  American  or  American-CWnese  con- 
cerns. Such  interests  will  give  the  best  consideration  to  the  perma- 
nent maintenance  of  the  business,  while  the  houses  of  other  nation- 
ality will  be  chiefly  interested  in  the  immediate  business  and  the 
profit  therefrom  an*d  will  desire  to  secure  later  business  for  their  own 
nationalities.  'This  statement  is  especially  pertinent  in  connection 
witli  the  recent  war  conditions. 

The  question  has.  been  asked  whether  there  are  sufficient  American 
concerns  of  this  character  to  handle  the  present  and  futuie  business. 

The  writer  believes,  that  there  are ;  in  fact,  he  .is  strongly  of  the 
opinion  that  some  of  the  present  conoem--i  should  make  a  work  in »  ar- 
rangement under  the  provisions  of  the  Webb-Pomerene  law  (making 
it  possible  for  American  int(M"osts  to  combine  in  handling  foicign 
business),  ■especially  to  eliminate  some  of  the  unwarranted  compe- 
tition betW'Cen  American  intwests  and  to  represent  fullv  the  best 
American  produclB.  Another  desirable  result  that  such^a  consoli- 
dation would  tend  to  insure  is  the  utilization  of  the  m^ost  experienced 
men,  particulai  ly  those  who  'have  been  in  China  and  have  become 
acquainted  with 'conditions.  Probably  moie  than  in  other  countries, 
experience  is  an  asset  in  handling  businws  m  Ch.ina.  Application 
engineers  should  be  engaged  fo^  long  periods — at  least  6  years  and 
preferably  lO'  years.  As  a  matter  of  tact,  th,is  is  the  rule  with  the 
engineers  of  other  nationalities.  Also,  to  handle  these  market-^  to 
the  best  advantage,  it  m  werj  necessary  that  such  engineers  should 
return  to  America  for  periodical  visits  to  keep  fully  up  to  date  witii 
developments.  Anotlicr  advantage  of  such  an  arrangement  wo'uld  be 
tlje  utilization  of  high-grade  men  to  handle  extensive  linas  of  radwaj 
materials,  equipment,  and  8uppli.es.  This  will  be  particularly  de- 
airab'le  when  competition  is  encountered,  as  it  will  be  after  the  war. 

In  the  writer's  opi.nion,  the  railway  markets  of  Cliina  aie  going  to 
develop  along  such  lines — in  fact,  conditions  are  such  now — that  one 
fxperiencedj  energetic  repiebentative  can  handle  a  veiy  corujiderable 
number  of  sunilar  lines;  and  he  can  do  this  at  the  various  commercial 
centera  if  aided  by  the  8t.affs  of  the  several  local  offices.  Thii  is 
ospocialy  truC'  where  these  local  offices  have  well-qua lilied  engineeis 
(as  they  frequentlv  have).  Th&ie  remarks  wph  particularly  to 
the  concerns  that  nave  their  principal  or  heaci  office  in  one  of  the 
larce  trading  centers^-usually  Shanghai  but  sometimes  Tientsin- 
ana  blanches  in  the  other  centers,  such  as  Peking,  Hankow,  and 
Canton  oi  Hongkong,  these  centers  being  the  most  miportant  from 
the  standpomt  of  railway  markets. 

An  additional  reason  for  American  manufacturers  to  combine  for 
handling  the  sale  of  railway  equipment  and  mateiiala  to  the   Chinese 


CONCLUSIONS  AND  SUGGESTIONS. 


259 


Government  Railways  is  the  growing  tendency  for  the  Ministry  of 
Communications  to  supervise  large  purchases.  Manufacturere  in 
the  United  States  do  not  yet  appreciate  as  they  will  later  the  differ- 
ence between  s.^Uing  railway  equipment  and  material  to  a  central- 
ized buying  organization  and  the  competitive  buying  of  a  large 
number  of  private  railways.  This  is  also  a  strong  argument  for  hav- 
ing seasoned  application  engineers  available  to  handle  this  bus- 
iness, particulai  ly  in  view  of  the  weight  that  such  men's  opinion 
carries  with  the  Chinese  officials.  It  goes  without  saying  that  an 
acquaintance  with  the  personalities  of  the  officials  and  a  knowledge 
of  the  formalities  of  procedure  are  valuable  assets  in  this  connection; 
and  they  both  take  time  to  acquire. 

The  most  advantageous  point  at  which  such  representatives  may  be 
located  is  rather  difficult  to  state,  particularly  as  most  American  con- 
cerns have  their  principal  or  head  offices  in  Shanghai.  Peking  is  likely 
to  become,  in  the  course  of  time,  the  most  important  place,  because 
of  its  bein^  the  headquarters  of  the  Ministry  of  Communications  and 
of  the  Pekmg-Hankow  and  Peking-Suiyuan  lines,  as  well  as  the  point 
from  which  one  can  best  keep  in  close  touch  with  the  Cheng-Tai, 
Tao-Ching,  and  Pienlo  lines,  whose  operating  headquarters  are  at 
points  on  the  Peking-Hankow  line.  Tientsin,  the  headquarters  of 
the  Peking-Mukden  and  Tientsin-Pukow  lines  and  also  of  the  Kailan 
Mining  Administration,  Is  only  87  miles  by  rail  from  Peking.  Many 
of  the  American  manufacturers  have  fully  equipped  branches  in 
Tientsin,  some  of  which  handle  the  Peking  business.  The  round  trip 
between  Peking  and  Tientsin  can  be  made  in  a  day,  the  traveler 
having  from  10  a.  m.  to  4.45  p.  m.  at  either  end. 

Hankow  is  headquarters  for  the  Hukuang  Railways  and,  on  account 
of  the  construction  of  these  lines,  will  be  an  important  point  to  be 
kept  in  mind.  Canton  (or  Hongkong  as  an  alternative  location),  on 
account  of  the  existing  Hues  and  Imes  that  probably  wiU  be  con- 
structed, will  be  a  point  of  some  considerable  importance  for  the 
handling  of  Chinese  railway  markets  in  southern  China;  from  this 
point  the  French  Indo-China  railways  can  be  reached. 

Shanghai,  while  the  most  important  commercial  center  in  China, 
is  the  headquarters  only  for  the  Shanghai-Nanking  and  Shanghai- 
Hangchow-Xingpo  lines,  both  under  British  foreign  staffs.  It  is 
probable,  however,  if  sufficient  traveling  is  done,  that  Shanghai  is 
the  location  from  which  the  situation  can  best  be  handled  as  a  whole — 
at  least  for  the  present.  From  whatever  point  it  is  undertaken  to 
handle  the  business,  a  very  considerable  amount  of  traveling  will  bo 
required  to  obtain  all  the  business  possible. 

CHINESE  STUDENTS  IN  UNITED  STATES. 

Many  persons  probably  do  not  appreciate  the  number  of  Chinese 
students  that  are  being  given  technical  education  in  America  through 
the  working  of  the  American  refund  of  the  Boxer  indemnity.  Nimi- 
hers  of  these  students  are  remaming  and  taking  a  limited  apprentice- 
ship course  in  various  railway  ecmipment  plants.  Some  of  the  present 
Chniese  Government  Railway  officials,  particularly  in  the  mechanical 
department,  have  followed  this  course.  Without  doubt  it  has  been 
of  much  benefit  to  these  men,  but,  in  the  writer's  opinion,  the 
maxhnum  results  were  not  obtained  for  the  reason  that  the  men  were 


260 


lAILWAY  MATERIALS',  EQ,UIPMEFT,  AND  SUPPLIES, 


tramed  mostly  in  designing  and  manofacturinff  methods  of  the  Tery 
large  eon<!ems,  while,  when  they  retura  to  China,  they  are  more 
concerned  with  the  daily  routine  of  keeping  things  ranning.  These 
men  would  have  received  much  more  benefit  had  the  same  time 
been  spent  m  the  railway  roundhouse  or  back  shops  in  the  making 
of  all  kmds  of  repairs. 

mSHHlUTION  OP  CATALOGUEa 

In  China  and  Japan  there  are  no  restrictions  m  to  the  distribution 
of  catalogues,  handbooks,  and  similar  publications.  Where  the 
recipients  can  read  English  (as  thev  can  do  in  many  instances  in 
both  countnes)  there  is  no  doubt  of  the  value  of  such  distribution. 

flCHNICAL  AND  OTHER  USEFUL  PUBUCATIONa 

B^  ^f^'  If  *®^  Review,  first  published  in  Manila  but  now 
published  in  Shanghai,  has  been  the  principal  engineering  paper  for 
some  years.  Another  technical  pubhcation  in  connection  with 
railway  markets  that  is  printed  in  Engfeh  is  the  Eastern  Engineer 
(JSntish),  published  at  Shanghai  and  Hongkong.  A  new  publica- 
tion known  as  the  Trans-Pacific  is  devoted  to  financing  and  engineer- 
me;  this  will  be  published  in  Tokyo  in  connection  with  the  Japan 
Advertiser,  a  daily  paper  prmted  in  English  and  owned  by  American 
mtereste. 

One  of  the  most  useful  pubMcations  is  known  as  "Who's  Who  of 
Amencan  (Cbinese)  Returned  Students."  This  gives  in  both 
C/hinese  and  English  texts  a  concise  statement  concerning  all  such 
students.  It  is  particularly  useful  as  a  means  of  obtaining  informa- 
tion recardinff  the  various  Chinese  railway  officials  who  were  educated 
in  the  United  States,  before  calling  on  or  meeting  them.  The  price 
of  this  book  IS  II  Mex.  It  is  published  by  the  Tsing  Hua  Coflege, 
reking,  Cmna,  and  is  revised  annually. 

The  Imperial  Government  Railways  of  Japan  publish  in  ^yq 
volupaes  an  Official  Guide  to  Eastern  Asia.    This  is  very  useful 
particularly  the  maps  of  the  most  important  cities,  which  are  both 
clear  and  accurate.    The  five  volumes  axe  as  follows:  (1)  Manchuria 

Zt?  'Z^'i^^}  ?^3^Z^^^^^^  (3)  Northeastern  Japan;  (4) 

Chma;  (5)  East  Indies  (including  the  Philippine  Islands).  ^     '  '  ' 

o*  *  ».  ^'  ^"  Tyau's*' Treaty  Relations  Between  China  and  Other 
Mates  IS  very  good  for  answering  many  questions  that  arise  as  to 
the  pecuhar  conditions  m  Ch,ina. 

For  a  comniercial,  industrial,  and  residential  directory,  the  writer 
depended  m  general  on  Rosenstock^s  Directory  of  China  and  Manila. 
This  IS  published  annually  at  No.  4  Canton  Road,  Shanghai.  Copies 
are  (m  lie  at  the  several  district  offices  of  the  Bureau  of  Foreio-n 
md  Domestic  Conimerce.  The  agents  in  America  are  the  Thom^ 
rubiiahing  Co.  of  New  York,  and  Frank  Shipley,  of  Seattle. 


Appendii  1.— DIRECTORIES. 

FoUowmg  are  directories  of  the  principal  officials  of  the  railways 
covered  in  this  report,  so  far  as  it  was  practicable  to  obtain  such 
information  in  the  limited  time  at  the  writer's  disposal.  The  direc- 
tories are  arranged  in  the  order  of  the  text,  except  that  for  the 
Korean  Railway,  which  is  shown  as  a  section  of  the  South  Manchuria 
Railway.  The  writer  found  the  task  of  obtaining  anything  like  a 
complete  list  of  all  the  officials  exceedingly  difficult — in  fact,  an 
almost  impossible  undertaking — particularly  on  some  of  the  lines 
where  the  duties  of  the  foreign  and  Chuiese  staffs  are  not  clearly 
defined.  It  was  also  made  difficult  by  reason  of  the  many  changes 
in  the  railway  officials,  especially  the  higher  Chinese  officials. 

In  the  following  lists,  Chinese  officials  educated  in  the  United 
States  are  indicated  by  an  asterisk  (*). 

CHINESE  GOVERNMENT  RAILWAYS:  MINISTRY  OF  COMMUNICATIONS. 

Head  office:  Peking,  China. 

Minister Tsao  Ju-lin,  Peking. 

Vice  minister Yih  Kung-cho,  Peking. 

Councilor Chiang  Tsun-wei,  Peking. 

Do Yao  Kiio-Chen,  Peking. 

Director  of  the  Railway  Department Kwan  Kang-lin,  Peking. 

English  secretary P.  M.  Whang,  *Peking. 

Note.— Mr.  Whang  was  a  student  at  Michigan  Mining  College  from  1903  to  1912 
and  at  Columbia  University  from  1913  to  1914. 

PEKING-MUKDEN  (CHING-FENG)  RAILWAY. 

Head  office:  Hopei,  Tientsin.    Cable  address:  Kinfeng. 

Managing  director Chu   Kin   How   (Hsu  Ting-Chuck*), 

Tientsin. 
General: 

General  manager  and  engineer  in  chief.... D.  P.  Ricketts,  Tientsin. 

Secretary H.  W.  J.  Marshall,  Tientsin. 

Stores  superintendent. W.  K.  Bradgate,  Hsinho. 

Traffic: 

Traffic  manager J.  E.  Foley.  Tientsin. 

Deputy  traffic  manager. W.  H.  Steel,  Tientsin. 

Engineering: 

Chief  assistant  engineer E.  H.  Rigby,  Tientsin. 

Senior  district  engineer L.J.  Newmarch,  Shanhaikwan. 

Manager  bridge  works W.  G.  Howard,  Shanhaikwan. 

Mining  engineer W.  A .  Moller,  Chuliuho. 

District  engineer J.  C.  Martin,  Tongku. 

Resident  engineer. W.  0.  Leitch,  Kaopantzu. 

Do W-  M.  Bergin,  Lanchow. 

Assistant  engineer H  Farrant,  Fengtai. 

Do A.  M.  Tatham,  Tongshan. 

Do H.  Stringer,  Yingkow. 

Do L.  H.  Barnes,  Shankaikwan. 

Locomotive: 

Locomotive  and  works  superintendent F.  A.  Jamieson,  Tongshan. 

Assistant  locomotive  superintendent J.  C.  Anderson,  Kaopantzu. 

Works  manager Stewart  Fripp,  Tongshan. 

261 


JjjUMIHUUIWilU^ 


St\M£t 


EAILWAY  MATERIALS,  EQUIPMENT,,  AND  SUPPLIES. 


Accotmta: 

Chief  accou  of  ant William  Henderson ,  Tientsin . 

Locomotive  accountant F.  A .  Harris,  Ton^ahan . 

London  agents:  J.  Whittall  &  Co.  (Ltd.),  9  Fenchiirch  Avenn'e,  London,  E.  0. 

Consulting  engineer  fof  rails,  wheels,  axles,  springs,  and  bridcres:  C.  P.  Saudbori?. 
Princes  Mansions,  70  Victoria  Street,  Westminster,  London,  S.  W.  1. 


MG-SUIYUAN  (KW-SUI)  RAILWAY. 

Head  office:  Ptking.    Cable  .iiddress:  Kalganry. 

MiMii|rimgd:irector...         , ..Maj.  Gen.  W.  8.  Y.  Tinge,  Peking. 

A&sociate  manrngmg'  director I.e..  Ho,  Peking . 

Stores; 

Superintendent Wong  Sliib-tiea,  Nankow. 

Tiaffic: 

Traffic  manager  md   telegraph   iwperin- 

tendent , C.  T.  Shar,  Peking. 

'Traffic  inspector , Fong  Yii  shu,  Hsichihrnen. 

1*0. , Lin  Pao  Chieh,  Kalgan. 

,^'®-  -  - -  -  • —  P.  Y.  Sliar,  Kangchwang. 

Do C.  C.  Woo,  Tatungfu. 

Transporting  office:  *^ 

Secretary- , , C.  Y.  Wen.  Hopei.  Tientsin. 

Engineering: 

Enf?i,neer  in  chief Chen  Hah-lin,  Kalgan. 

Distnct  engineer ,.Chai  Chao-lin,  Nankow. 

Kesident  engineer Tsai  Tsun-chon,  'Tatungfu. 

A»istant  engineer. , , Liu  ( 'liee,  Kalgan . 

P^ Li  Keh-sui,  Nankow. 

P'O ■ • S.  C.  Shao,  Fengchon. 

Locomotive: 

Deputy  locomotive  8uperintendeD,t S.  T.  Wang*  (II.  E.),  Nankow. 

Deputy  superintendent  workshop , .  .P.  Wang*  (M.  E.),  Nankow 

Do.... , , ,...C.  F.  nou*(M.  E.),  Kalg 

Accounts: 

Chief  accountant. . , , , II .  C .  Lee,  Peking. 

Aasietant  accountant , Ip  Tai-wan,  Peking. 

TIENTSIN-PUKOW  EAILWAY. 

Head  office:  Hopei,  Tientsin.   Cable  address:  Tsinputy. 

Managing  director , , . . .  S.  C .  Shu,  Tientsin. 

A;sai8tant  managing  director S.  W.  Lao,  Tientsin. 

General: 

Superintendent...., , Cheng  Hang,  Tientsin. 

Foreign  secretary L.  S.  Tang,  Tientsin. 

Secretary  and  chief  storekeeper Kwan  Pamlun,  Tientsin. 

Traffic: 

'Traffic  mannger S.  T.  Chow,  Tientsin. 

Locomotive: 

Chief,  locomoti\^c  and  workshoiw Tiai,  Kuo-Tsao,  Tientsui. 

Acconnte: 

Chief  .acconra'lwit  and  auditor  .Kuimg'  Y.  Pao,  Tientain, 


IIUN'  (liOn'HBI.N)  DISTAKT. 
GeneraL 

Superintendent. Chien  Shuh-Chao,  Tainanfu, 

Depot  storekeeper. Fmg  Mm  Chiwn,  Tainanfu. 

Chief  traffic  inspector. .E.  C.  Liu.  Tsaiigchow. 

Do C.  Y.  Feng,  Tainanfu. 

ffineeri  ng: 

District  «ngin,eer  in  chief K„.  Y.  Kwong*  (€.  E.),  Tientsin. 

District  en.gine«r. , . .  .H.  T.  Chao,  Tientsin. 

Do Hu  Scbeng-Hung,  Tsinanf u. 

Do Y.  &.  Ye,  Tenghsien. 


Locomotive: 

Workshop  superintendent. . 

Boiler  inspector 

Accouute: 

District  chief  accountant 

Accountant 


APPENDIXES. 


- Konway  M.  P.  Tsing,  Tsinanfu, 

A.  G.  Martyn,  Tsiuanfu. 

Kuang  Y.  Pao,  Tientsin. 

T.  Y.  Chao,  Tientsin. 


263 


T.  W.  T.  Tuckey,  Pukow. 

A.  R.  J.  Hearne,  Pukow. 

E.  Connell,  Pukow. 

R.  T.  Walters,  Pukow. 

O.  Karll)eck,  Pengpu. 

R.  B.  Aries,  Hsuchowf u. 


HANPU  (SOUTHERN)  DISTRICT. 

General : 

Superintendent Ho  Ping-Lin,  Pukow. 

Depot  storekeeper S.  K .  Lee,  Pukow. 

Traffic: 

Chief  traffic  inspector W.  C.  Dodds,  Pukow. 

Engmeermg: 

District  engineer  in  chief 

District  engineer 

Assistant  engineer 

Do 

Do 

Do 

Locomotive: 

Locomotive  and  workshop  superintendent.  J.  Alston,  Puchen. 

Workshop  foreman W.  J.  Black,  Puchen. 

Boiler  inspector C.  R.  Butler,  Puchen. 

Accounts: 

District  chief  accountant J.  O.  B.  Power,  Tientsin. 

Accountant G.  P.  Douglass,  Tientsin. 

CHENG-TAI  (SHANSI)  RAILWAY. 

,^Head  office:  Shihchiachuang,  Chihli.  This  line  is  given  as  the  Tcheng  Tai  in 
the  Universal  Directory  of  China,  showing  head  office  located  at  Cheukiatchonang. 
another  rendering  of  Shihchiachuang.  * 

GeS^stf ff -^^^^ ^^^^  ^^"^^  ^^^'  S^il^chiachuang. 

Consulting  engineer Hsu,  Shihchiachuang. 

Engineer  in  chief. :---..-- M.  M.  Jacquit,  Shihchiachuang. 

Ass^tant  engineer  in  chief M.  de  Lapeyvieve,  Shihchiachuanff 

Traffic  engineer. M.  M.  Barnes,  Shihchiachuang. 

Locomotive  engineer M.  Alabergere.  Shihchiachuang. 

PEKING-HANKOW  RAILWAY. 

Head  office:    L(^tion  Glacis,  Peking.    Cable  address:  Kinhan. 
Managing  director Dr.  C.  C.  Wang*  (C.  E.  and  Ph. 


,    .  .  Peking. 

Assistant  managing  director C.  S.  Shui,  Peking. 

Ueiieral  adviser G.  Bouillard,  Peking. 

I echnical secTetary O.  Bievelez,  Peking. 

tieneral: 

Head  stores  bureau Lim  Hsueh-Ying,  Peking. 

Head  business  bureau Fei  Hsing-Jen,  Peking 

Head  interpretation  bureau Chin  Kuo-Pao,  Peking. 

1  raffic:  ** 

Head  traffic  bureau. Chien  Yung,  Peking. 

Chief  traffic  inspector de  Rotrou,  Peking. 

Traffic  secretary Co viaux,  Peking. 

1  ngmeering: 

Head  engineer  bureau Shen  Cheng-Tsun,  Peking. 

(  hief  engineer  maintenance  department.  -Dethieu,  Peking. 
Secretary  maintenance  department Preau,  Peking. 

SHANGHAI-HANGCHOW-NINGPO  (HU-HANG-YUNG)  RAILWAY. 

Head  office:  Shanghai. 

Acting  managing  director C.  P.  Yin*  (A.  B.),  Shanghai. 

General  secretary  (Chinese) Chung- Yu-Hng,  Shanghai. 


D.). 


264  BAIt,WA.Y  :MATERIALS,  EQUIPMEl^T,  AEB  SUPPLIES, 

General  .eecretury  (EBgliBh). , , .  .T.  C.  Cliii*  (M.  B.  A .),  Shanghai. 

Chief  English  aecretiiry P.  H.  Lo*  (B.  A. ).  Shanghai. 

Chief  Chines©  secretary — .0.  K.  May,  Shanghai . 

Chief  audilor . .  -  -  ■ —  ---  -  - T.  T.  Linn,  Shanghai. 

En^neer  in  chief A.  C.  Clear  (M.  I.  C.  E.),  Shanghai. 

Assistant  to  engineer  in  chief D.  P.  Griffiths  (M.  I.  C.  E,),  Shanghai. 

Oonalraction  engineer. E.   F.   Foreetier  (A.   M .   L   C.   E.), 

Shanighju. 

Biitfict  engineer.  •.••.•....:... 1'.  C.  .Molony,  Hangchow. 

Do..... T.  C.  Pu*  (B.  S.),  Ningpo. 

Traffic: 

Acting  tidffic  nutniier C.  L.  B.  Wayne,  Shanghai. 

Ainiiipiit  tefic  HUiiigier' S.  K.  Shen,  Shanghai. 

Locomotive: 

Locomotive  superintendent G.  T.  Finch,  Woosung. 

Assistwit  locomotive  superintendent K.  L.  C.  Sun*  (M.  E.),  Shanghai. 

Stuns: 

Chief  storekeeper — C.  S.  B.  Mayor  Cooke,  Shanghai. 

Assistant  chief  storekeeper A.  S.  Fred  Chur,  Shanghai. 

Accounts: 

Chief  accountant. .  - .H,  Middleton,  Shanghai. 

Assistant  accountant W.  O .  Lancaster,  Shanghai . 

DO'.. .  •••••••••••*••••••' .W.  K.  Chu.n,  Shanghai. 

Local  Joint  agents  in  China:  Jardine.  Matlieson  &  Co.  (Ltd.)  and  the  Hongkong  & 
Shanghai.  BanMng  Corporation,  both  of  Shanghai. 

Pekittg'.repreRDtatiom:  The  British  Je  OMneae  Corporation  (Ltd.);  Mr.  S.  F.  Mayers, 
managing  director,  Peking. 

Agents  in  England:  The  British  &  Chinese  Corporation  (Ltd.),  3  Lombard  Street, 
London,  S.  C. 

aMAKfWAi  MiMirmr  /mtt  mimpy  hah  WAV 

British  &  Chinese  Corporation  (Ltd.).    Head  office:  Shanghai.    Cable  address: 

Bobstay. 

Acting  mmagi.i!|g  director-  •.•....•.•.. C.  P.  Yin*  (A.  B.),  Shanghai. 

Ctenenl  secretary  (Chinese) Chung  Yu-hnff,  Shanghai. 

Geneni  iicwstiiry  (English) T.  C.  Chu*  (M.  B.  A.),  Shanghai.. 

Chief  auditcar ...T.  T,  Linn,  Shanghai. 

General: 

General,  maoaeer. A.  C.  Clear  (M.  I .  E.  E.),  Shanghai. 

.AsBtsttttt  to  general  manager D.  P.  Griffith  (M.  I.  C.  E. ),  Shanjghai. 

Chief  storekeeper C.  S.  B.  Mayor  Cooke,  Shanghai. 

Traffic: 

.Acting'  traffic  manager C,  L.  G.  Wayne,  Shanghai. 

.Assistant  tzaffic  'manager  (Chinese) I.I.  Lau,  Shanghai. 

Engineering: 

En^neer  in  chief — A.  C.  Clear  (M.  I.  C.  E^,  Shanghai. 

Assistant  to  engineer  in  chief D.  P.  Griffiths  (M.  I.  C.  E.),  Shanghai. 

Maintenance  engineer I .  Tnaiford,  Shanghai  North. 

Assintant  engineer. •  .T.  Yang,  Shanghai  North. 

Do.. — .J.  W.  C.  Chun,  Chinkiang. 

Locomotive: 

Locomotive  superintendent G.  T.  French,  Woosung. 

Assistant  locomotive  superintendent  and  W,  I.  Grey  (A.  M.  I.  E.  E.),  Woosung. 
electrical  engineer 
Accounts: 

Chief  accountant. .H.  Middleton,  Shanghai. 

Assistant  accountant W.  O.  Lancaster,  Shanghai. 

Do W.  K.  Chun,  Shanghai. 

Do........ T.  L.  Ku,  Shanghai. 

Local  joint  Jipents  in  China:  Jardine,  Matheson  &  Co.  (Ltd.)  and  the  Hongkong  <& 

ShanghU'  .Banking  Corpomtion,  both  of  Shanghai. 

Bepnesentative  m  Peking:  British  &  Chinese  Corporation  (Ltd.);  Mr.  S.  F.  Mayers, 
fi^iiiigi'ifjg'  director. 

Consulting  engineers:  Sir  J.  Wolf  Barry  (K.  0.  B.)  and  A.  J.  Barry,  Dartmouth 

.Bouse,  Qaeen  Ajone'aGate,  W6Stmi.nster,  SW. 


APPENDIXES.  265 

EAIFENG-HONAN  LINEa 

Also  known  as  the  Pienlo  Railways  and  the  Lunghai  Railways.  Director  general: 
Shih  Chao-Tsing,  Peking.  Operating  head  office:  Chengehow,  Honan.  Cable 
address:  Lunghai  Chengchowho. 

General  staff: 

Engineer  in  chief Henri  Seynat,  Chengehow. 

General  secretary Joseph  Meis,  Chengehow. 

Technical  secretary Henry  Metz,  Chengehow. 

Chief  storekeeper M.  Villaceque,  Chengehow. 

Agent V.  Blockhuys,  Shanghai. 

Do A.  Picca,  Hankow. 

Do E.  Rousseau,  Tientsin. 

Western  section: 

Chief  of  section. L.  Casella,  Honanfu. 

Eastern  section: 

Chief  of  section Orphanides,  Suchowf  u. 

HUKUANG  (HAN-YUEH-CHUAN)  RAILWAYS. 

The  Hukuang  Railways  comprise  the  Canton-Hankow  (Han-Yueh)  Railway,  the 
Hankow-Szechwan  (Han-Chuan)  Railwaj^,  the  Canton-Samshui  (Kwang-Sam)  Kail- 
way,  and  the  Kwangtung  (Yueh-Han)  Railway  Co.  (Ltd.).    Head  office:  Hankow. 

DIRECTORATE  GENERAL. 

Director  genemi Dr.   Jeme   Tien-Yow*   (Mem.   A,   S. 

C.  E.),  Hankow.i 

Secretary  and  chief  of  general  affairs S.  Y.  Kuan  Hankow. 

Secretary C.  H.  Tsai,  Hankow. 

Do T.  T.  Wu,  Hankow. 

Do.. Y.  S.  Yang,  Hankow. 

Chief  of  construction  affairs  department S.  S.  Chao,  Hankow. 

Chief  of  audit  and  accounts  department C.  L.  Chen,  Hankow. 

HUPEI-HUNAN  SECTION.  CANTON-HANKOW  (HAN-¥UEb)  RAILWAY. 

Head  office:  Wuchang,  Hupeh.    Cable  address:  Yuehanry. 

Acting  managing  director Yen  Te  Chii^,  Wuchang. 

Assistant  managing  director .T.  H.  Tang,  Changsha. 

English  secretary F.  C.  Zung,  Wuchang. 

General: 

Chief  of  general  affairs P.  H.  Kou,  Wuchang. 

Chief  of  construetion  affairs CM.  Shon,  Wuchang. 

Chief  of  audit  and  accounts  department . .  W.  F.  Y.  Wong,  Wuchang. 

Cliief  of  land  department P.  S.  Wong,  Wuchang. 

Engineering: 

Engineer  in  chief A.  G.  Cox  (M.  I.  C.  E.),  Wuchang. 

Secretary  to  engineer  in  chief C.  G.  Golding,  Wuchang. 

District  engineer  (section  1) J.  H.  Williams  (M.  I.  C.  E.),  Wuchang. 

District  engineer  (section  2) F.  W.  W.  Valpy,  Wuchang. 

District  engineer  (section  3) M.  R.  Sinclair,  Wuchang. 

District  engineer  (Changsha  Line) C.  E.  Stewart,  Changsha. 

Traffic: 

Superintendent  of  traffic  department K.  S.  Hsiao,  Wuchang. 

Traffic  superintendent C.  L.  Huang,  Changsha 

Telegraph: 

Superintendent  of  telegraph  department.  .P.  L.  Fong,  Wuchang. 
Locomotive: 

Chief  of  locomotive  department- Donald  Fraser,  Wuchang. 

Accounts: 

Chief  accountant. T.  G.  J.  Brown,  Wuchang. 

Assistant  accountant T.  Y.  Pearson,  Changsha. 

Stores: 

Chief  storekeeper .Thomas  L.  Blair,  Wuchang. 

1  See  footnote  oa  page  8& 


266 


RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPLIES. 


HANKOW-ICHANG  SECTION,  HANKOW^ZECHWAN  (HAN-CHUAN)  RAILWAY. 

Head  office:  Hankow. 


Acting  maiMigin^^  director., , , 

Acting  engineer  in  chief 

Secretory , . . . 

Sfeniof  .anifltiint  engineer , 

Do 

A»istant  engineer... . , 

Do 

Superintendent  of  wwfcsliop . . . . . 

Chief  accoiintont . 

Assistant  chief  accountant 

Dei)uty  of  telegraph  department , 

A«istant  chief  stiwekeC'per 


Dr.  Jerae  Tien-Yow,  Hankow. 

J.  C.  Carroll,  Hankow. 

C  Liu,  Hankow. 

W.  C.  Hsu,  Hankow. 

... K.  S.  Wong,  Hankow. 

-F.  K.  Sah,  Hankow. 

J.  G.  Wong,  Hankow. 

.8.  Y.  Teng,  Hankow. 

.K.  Y.  Ho,  Hankow. 

T.  G.  J.  Brown,  Wuchang. 

C.  H.  Tsai,  Hankow. 

Y.  K.  Tau,  Hankow. 

0.  Jean,  Hankow. 


ICHAMG-KWIICHIIWFC  aUCTION,  HANKOW^,lCHWAN  (HAN-CHUAN)  RAILWAY. 

Head  office:  IciiMig. 
Acting  managing  director. . . , 


Aisl^iiiit  indulging  director 

Bnglidi  BecfctMry ............. 

En^neer  in  chief , . 

Senior  assietant  engineer 

LfO  ............................ 

Chief  accountant. 

AaeiBtant  chief  accountant 

Assiatont  chief  storekeeper. 


Dr.  Jeme  Tien-Yow,  Hankow. 

S.  P.  Fong,  Ichang. 

T.  Z.  Koo,  Ichang. 

J.  C.  Carroll,  Ichang. 

C.  P.  Chang,  Ichang. 

.  D.  Wong,  Ichang. 

-*-  -T.  D.  J.  Brown,  Wuchang. 

— C.  H.  Tsai,  Hankow. 

Y.  L.  Tu,  Ichang. 


CANTON-aAMSiUJI  SECTION.  €ANT01f-SAllSHUi  (KWANG-SAM)  RAILWAY. 

Head  office:  Canton. 


Managing  director. . 

Engineer  in  chief , 

'Traffic  manager ; . . , 

Auditor , 


>........ .\.-',  X. .  juLiOuii  y^anion. 

K.  C.  Johnson  (Chinese),  Canton, 

.T.  H.  Low,  Canton. 

- T.  S.  Yuen,  Canton. 


KWANGTUNG  (YUEH-HAN)  RAILWAY  CO.  (LTD.).  CANTON-SHINCHOW  SECmON. 

Head  office:  Canton. 

Director... Au  Keng  Hsing,  Canton. 

Advisory  engineer D.  S.  Williams,  Canton. 

Chief  engineer. Yung  Men  Hon,  Canton. 

Traffic  superintendent .M.  T.  Cheng,  Canton. 

Mechanical  superintendent Liang  Woo,  Canton . 

Inspecting  engineers  in  England:  C.  P.  Sandberg,  9  Bridge  Street,  Westminster, 

S.  W. 

Inapecting  engineen  in  United  States :  R.  W.  Hunt  4  €&. ,  New  York. 

CHINESE  PKOTINCIAL  RAILWAYa 

TSCmilAlt  (ANGAMGEH'  MGHT  RAILWAY. 

Head  office:  Tiitailiiir,  Hdlimgkiang,  Manchuria.    Management  under  the  pro- 
vincial viceroy  of  the  Provinc©  of  Heilungkiang. 

■lAifGsi.  mmsmm'  lAiLWAy. 

Head  office;  Kiukiamg .    Liat  of  officials  of  this  lino  not  obtained. 


Head  office:  Nanking. 

Managing  director 

Traffic  manager 


NAUKINCS  CITY  RAUiWAY. 


'^mm  Kien  Shou,  Nanking. 

TM  Ilia  Min,  Nanking. 


APPENDIXES.  267 

CANTON-KOWLOON  (CHUI-KUANG)  RAILWAY. 

CHINESE  SECTION. 

Head  office:  Tai-Sha-Tau,  Canton.    Cable  address:  Kuangchui. 

M  .M  laging  director — Weu  Feh  Chang,  Canton. 

A-N-istant  managing  director. Liang  Shi  Hsu,'  Canton. 

S<M  retary i Chau  Teh  Mei,  Canton. 

(  lunese  secretary Yung  Man  Wai,  Canton. 

Knidneering: 

Engineer  in  chief H.  T.  Foord  (M.  I.  C.  E.),  Canton. 

District  engineer 1 . W.  M.  Stratton,  Canton. 

Assistant  engineer B .  Christiansen,  Sheklung. 

Do W.  W.  Leung,  Canton. 

Traffic: 

Traffic  manager C.  T.  Lin,  Canton. 

Traffic  inspector J.  F.  Smith,  Canton. 

Do S.  M.  Bander,  Shumchun. 

Lo(  omotive: 

Locomotive  superintendent C.  E.  Watson,  Canton. 

Ac  I  ounts: 

Chief  accountant H.  P.  Harris,  Canton. 

Assistant  accountant  and  auditor H.  S.  Chow,  Canton. 

Etoies: 

Chief  storekeeper. Chu  Yan,  Canton. 

Local  joint  a^^ents  in  China:  Jardine,  Matheson  &  Co.  (Ltd.)  and  the  Hongkong  A 
Slianghai  Banking  Corporation,  both  of  Shanghai. 

^  Agents  in  England:  The  British  &  Chinese  Corporation,  3  Ix>mbard  Street,  London, 
I-'  ' '. 

'I'lie  British  &  Chinese  Corporation  representative  in  Peking:  S.  F.  Mayer,  managing 
director. 

BRITISH  SECTION. 

Head  office:  Kowloon.    Cable  address:  Railway,  Hongkong. 

Manager H.  P.  Winslow,  Kowloon. 

Engineer  way  and  works R.  Baker,  Kowloon. 

Traffic  assistant W.  G.  Clark,  Kowloon. 

Traffic  inspector F.  Aslett,  Kowloon. 

Locomotive  superintendent C.  D.  Lambert,  Kowloon. 

Assistant  locomotive  superintendent Ingham  Sutcliff ,  Kowloon. 

Chief  accountant J.  Morris,  Kowloon. 

Chief  storekeeper G.  A.  Walker,  Kowloon. 

Agents  in  England:  Crown  Agents  for  the  Colonies,  4  Milbank,   Westminster, 
London,  S.  W. 

Consulting  engineers:  Sir  J.  Wolf  Barry,  Lyster  &  Partners,  2  Queen  Anne's  Gate, 
Westminster,  S.  W. 

CHINESE  PRIVATE  RAttWAYS. 

SUNNING  (HSINNING)  RAILWAY. 

Head  offices:  Sunning  and  Hongkong.    President  and  manager:  Chin  Gee  Hee, 
Sunning  and  Hongkong.    Hongkong  office:  No.  151  Connaught  Road. 

SWATOW-CHAOCHOW  (CHAO-SHAN)  RAILWAY. 

Chaochowc^  Swatow  Railway  Co.  (Ltd.).    Head  office:  Swatow.    Cable  address: 
Railway. 

Managing  director  general Chong  Hong  Nam,  Swatow. 

Acting  director  general Chong  Chee  Hain,  Swatow. 

Director Chong  Chrong  Hong,  Swatow. 

Secretary W.  T.  Ching,  Swatow. 

€HANGCHOW.AMOY  (CHANG-HSU)  RAILWAY  (FUKIEN  RAILWAY). 

Head  office:  Amoy.    Managing  director:  Wang  Ching  Hsien,  Amoy. 


I 


t  I 


268 


RAILWAY  MATERIALS,  EQUIPMENT,  AND  SUFPLIES. 


IE  IHDIISTItlAL  RAILWAYa 

For  the  rmmn  thaX  in  all  cusei  these  railwaye  are  numfiged  by  the  industries  served 
there  are  no  particular  officiata  for  these  short  lines.  It  was  therefore  found  imprac- 
ti«We  to  prepare  a  directory. 

fOlEIQIf  RAILWAYS  W  CHINA. 

'fllHNAN  (TfEN-YIlBI)  RAILWAY  (INBO.CIIINA  KAtLWAYS^^ 
Head  office:    Hanoi,  TongMng. 

Chief  department  of  public  works Luis  Oonstantine,  Hanoi 

Assistant  engineer  in  chief Antoine  Meyer,  Hanoi. 

YUNNAN  SECTION. 

Manager  of  workii|5  and  engineer  in  chief G.  J.  Chemin-Dupontes,  Hanoi 

General  chief  of  stores Pierre  Foursand,  Hanoi. 

SHANTUNG  (3A.NTO)  .BA.II.WAY. 

Head  office:    Tsingtau  (Seitou).    Cable  address:  Santetsu, 

Diirector  of  th®  railway  department 8.  Salcafuchi,  Tsingtau. 

Bureau  of  general  affaus. K.  Sugata,  Tsingtau. 

Traffic  bureau K.  Chrnki,  Tsingtau. 

Operation  bureau Y.  Funada,  Tsingtau. 

Financial  bureau.. ...T.  Sato,  Tsingtau. 

Whaff  office .K.  Chiato,  Tsingtau. 

Wprlcshops .K.  Wada,  Tsingtau. 

Mining  bureau — S.  Handa,  Tsingtau. 

Bales  bureau M.  Matsumoto,  Tsingtau. 

TllAMWAYS  IN  CHINA. 

TiENTSDI  TBAMWAYS. 

These  tramways  are  operated  by  the  Compagnie  de  Tramways  et  d'^clairage  de 

TientfliiL  Sod6t6  Anonyme,  with  headquarters  m  Brussels,  Belgium.    Head  omce  in 
China:  Tientsin.    Cable  address:  Tsintram.    All  the  lollowing  officials  are  located  in 

Tientsin.: 

General  manager , 0.  Gaillard 

Chief  engineer , ,G.  Rouflart. 

Traffic  and  roiad  manager... F.  Lahaye. 

Mechanical  engineer , . , N.  Vrancken. 

Chief  accountant A.  Paternoster. 

SHANGHAI  TRAMWAYS. 

These  tramways  are  operated  by  the  Shanghai  Electric  Construction  Co.  (Ltd.). 

Head  office:  No.  2  North  Soochow  Road,  Shanghai.    All  the  lollowing  officials  are 
located  in  Shanghai: 

General  manager.. Donald  McCall. 

Deputy  manager- J.  G.  Smeaton. 

Tiniffic  manager .E.  Carroll. 

Rolling  stock  superintendent J.  L.  Gordon. 

Aseistant  rolling  stock  superintendent H.  G.  Sadler. 

Line  engineer... ,. , .H.  J.  Blatchford. 

Assistant  line  engineer T.  H.  Brownlie. 

St  irekeeper J.  L.  Stuart. 

Secretary  in  London:  L.  W,  Hawkins,  Basilden  House,  Mooregate,  London,  E.  C. 

HONGKONG  TRAMWAYS  CO.  aTD.). 

Head  office:  Russell  Street,  Hongkong.    Cable  address:  Snakefish.    All  the  follow- 
in?  officials  are  located  in  Hongkong: 

Chairm,an , .  .Hon.  C.  E.  Anton. 

General  manager  and  cliief  engineer J.  J.  8.  Kennedy. 

Aaaistant  chief  engineer ' R.  J.  Wilton. 


APPENDIXES. 


269 


,.....W.  E.  Roberta. 

A.  Course. 

A.  K.  Henderson. 

, A.  D.  Macdonald. 


Secretary 

Traffic  superintendent 

Workshop  superintendent. 

Power  engineer 

PEAK  TRAMWAYS  CO.  aTD.). 

Head   office:  Alexander  Building,   Hongkong.    Cable  address:  Fencibles.    The 
officials  are  located  in  Hongkong: 

General  managers John  D.  Humphreys  &  Son. 

Superintending  engineer C.  B.  Buyers. 

IMPERUL  GOVERNMENT  RAILWAYS  OF  JAPAN. 

Head  office:  Gufukubaehi,  Marunouchi,  Tokyo.    Cable  address:  Kobusbo, 

President Baron  S .  Goto,  Tokyo. 

Vice  president K.  Nakamura,  Tokyo. 

GENERAL  STAFF. 

Secretariat: 

Director,     section    of  .  documents    and 

archives S.  Nakanishi,  Tokyo. 

Director,  section  of  personal  affairs T.  Inoki,  Tokyo. 

Secretary,  section  of  relief  insurance T.  Nagai,  Tokyo. 

Engineer  in  chief,  inspection  section K.  Hasigawa,  Tokyo. 

Engineer,  raUway  investigation  office T.  Tariaka,  Tokyo. 

Coordinating  secretary Y.  Tsurumi,  Tokyo, 

General  Administration  Bureau: 

Director E.  Osonok  (secretary),  Tokyo. 

Chief,  general  affairs Y.  Osaki  (secretary),  Tokyo. 

Chief,  technical  affairs T.  0.  Ito  (engineer),  Tokyo. 

Traffic  Bureau: 

Director Y.  Kmoshita,  Tokyo. 

Chief,  general  affairs D.  Shono  (engineer),  Tokyo. 

Passenger  traffic  manager S.  Mikama  (secretary),  Tokyo. 

Freight  traffic  manager J.  Murai  (secretary),  Tokyo. 

Transportation  superintendent ...... .T.  Furkawa  (engineer),  Tokyo. 

Financial  Bureau : 

Director K.  Morimoto,  Tokyo. 

Chief  accountant ^ U.  Beppa  (secretary),  Tokyp. 

Chief  auditor T.  Nagura  (engineer),  Tokyo. 

Chief  of  stores S.  Aoki  (secretary),  Tokyo. 

Engineering  Bureau: 

Director S.  Sugiusa,  Tokyo. 

Chief  of  design  section M.  Nawa  (engineer),  Tokyo, 

Chief  of  extension  section S.  Omura  (engineer),  Tokyo. 

Chief  of  maintenance  of  way  and  works 

section N.  Okano  (engineer),  Tokyo. 

Machinery  and  Rolling-Stock  Bureau: 

Director Y.  Shima,  Tokyo. 

Chief  of  mechanical  engineering  section. .  K.  Sakuma  (engineer),  Tokyo. 

Chief  of  electrical  engineering  section I.  Inouye  (engineer),  Tokyo. 

DIVISION  STAFFS:  EASTERN  DIVISION. 

Director Dr.  T.  Okado  (engineer),  Ueno,  Tokyo, 

Chief,  general  affairs G.  More^  (secretary),  Ueno,  Tokyo. 

Chief,  traffic  section R.  Asahma  (en^neer),  Ueno,  Tokyo. 

Chief,  maintenance  section C.  Soyama  (en^neer),  Ueno,  Tokyo. 

Chief,  mechanical  and  electrical  section S.  Takasu  (engineer),  Ueno,  Tokyo. 

Chief,  accounts  section R.  Yatabe  (secretary),  Ueno,  Tokyo. 

Omeya  works  manager -S.  Takasu  (engineer). 

Touchizaka  works  manager — Y.  Kaminasa  (engineer). 

Nagano  works  manager T.  Okabe  (engineer) . 

Moroka  works  manager S.  Mayanagi  (engineer). 


CI  'T  A 
Sill 


HAILWAY  MATERIALS,  EQUIPMENT,  AKD  SUPPLIES.. 


"SAL  D'PrisiON. 


Birector. ,, . , 

Chief,  general  affairs 

Chief,  traffic  section. 

Chief,  nmintenance  sectioii 

Cliief,  mechanical  and  electrici 

Chief,  accoiiiito.i»ct»ii !.. 

0-i  works  man.ager 

Hamamatsii  worka  ■nianiger 

Yokkarchi  works  manager 

Eauazawm  'iforks  'nmnager 


Birector. ...... , 

Chief,  general  affairs. „ . ., , 

Cliief,  traffic  section 

Chief,  maintenance  section , , , 

Chief,  mechanical  and  electrical  section. 

Chief,  accounta  sectioii 

Takatori  works  manager , 

Kobe  works  mamger , 

Shimonoeeki  works  'mMtager. , . . 

Yonago  works  maomsur. , , . . . 


ctor , 

Chief,  general  affairs . 

Chief,  traffic  section.. 

Chief,  maintenance  section 

Chief,  mechanical  and  elecMcal 

Chief,  acconnte  aection 

Kokura  works  mamiger 

Yakahnshi  works  muia^r 

Wak,amat8u  works  ma.nager 


H.  Magao,  Shimbaahi,  Tokyo. 

S.  Nakagawa  (secretary),  Shimbashi, 

Tokyo. 
. R .  N omura     (engi iieer) ,      Shimbashi, 

Tokyo. 
section H.    Inagaki    (engineer),     Shimbashi, 

Tokyo. 
-N.  Fukushima  (engine©!),  Shimbashi, 

Tokyo.. 

S,  Akiyama  (engineer). 

M.  Skida  (engineer). 

K.  Kishyanca  (engineer). 

■  - S.  Watanalm  (engineer). 

»N  DIVISIOM. 

Y.  Nomura,  Kobe. 

M.  Fiikutomi  (secretary),  Kobe. 

Y.  Kodaira  (engineer),  Kobe. 

T.  Eudo  (engineer).  Kobe. 

S.  Taguchi  (engineer),  Kobe. 

J-  ShMBniji,  teecretary),  Kobe. 

S.  Tabucm  (en^eer), 

.8.  Nakaiia  (engineer). 

-  -T.  Kisu  (engineer). 

-  -  Y.  Murao  (engineer). 

KYQSHU  DWISiOM. 

—  R.  Daido,  Moji. 

•  -  ■ -H.  .HiralB  (sc'cretary),  Moji. 

- K.  Yosbikawa  (junior  eecretary),  Moji. 

-  -  - T.  Pimikawa  (engineer),  Moji. 

sec'tion. K.  Yamtfuchi  (engineer),  Moji. 

-  •  - S.  Hirayama  (junior  secretary),  Moji. 

-K.  Yamaguchi  (engineer). 

• K.  Fyeda  (entgiaeef). 

-  - 0.  Tsukma  (engineer). 


^^  HDKKAIIMI  DflTlSIOlf . 

Birector ... S.  Suzuki.  Sapporo. 

Cbiet,  general  affairs S.  Koyano  (secretarj'),  Sapporo. 

Chief,  traffic  section , K .  Tamaka  (secretary),  Sapporo. 

Chief,  maintenance  section T.  Omura  (engineer) .  Sapporo 

Chief,  mechanical  .and  electrical  section 1.  TamaiaAi  (engineer) ,  Sapporo. 

Chief,  accounts  section T.  Yomiara  (secretary). ' Sapporo. 

Sapporo  works  manager , 

Asahigawa  works  manager. K.  Twa.moto  (engineer). 

Hakoaati  works  manager Y.  Oyamalla  (engineer). 

Lnspectiott  'bwfean  in  United  States  (.Metropolitan  life  Building  New  York  CitvV 

Engineer  in  chaige,  S.  .Kobaaii.;  T.  Tiyama.,  K.  Sakai.  .     ^^' 

SOUTH  MANCHURIA  RAttWAf  CO. 

H«ad.oiice:  Dai..ren.    'Gable  address:  Maiitetsu. 

Board  of  direction : 

Director  in  cliief ,Br.  S.  Kimisawa,  Bairen. 

.Director T.  Kawakami,,  Darren. 

Do ,, 8.  Kal>a:yaiiia,_  Dairen. 

^ K.  Kaino,  Daifen. 

U'**-  - ■  - R.  Kawamura,  Dairen. 

jDo R.  Tatsui,  Dairen. 


APPENDIXES. 


271 


Secretariat: 

Director Dr.  S.  Kunisawa,  Dairen. 

Acting    superintendent,    section    of   per- 
sonnel  K.  Kawamura,  Dairen. 

Assistant  superintendent,  section  of  per- 
son nel T.  Yamanishi ,  Dairen. 

Superintendent,  inspection  section T.  Tanabe,  Dairen. 

Department  of  general  affaire: 

Director T,  Kawakami,  Dairen, 

Director,  ronstruction  bureau S.  Hori,  Dairen.  - 

(ieneral  superintendent,  railway  section.. N.  Tani,  Dairen, 

Superintendent    and    secretary,    railway 
operation  section  and  secretariat K.  Kaise,  Dairen. 

Superintendent,  railway  traffic  section T.  Oka,  Dairen. 

Superintendent,  maintenance  of  way  sec- 
tion  T.  Matsuda,  Dairen. 

Superintendent,  public  works  section Y.  Kato,  Dairen. 

Superintendent,  architectural  section K.  Onogi,  Dairen. 

Superintendent,  section  of  correspondence.  J.  Yamada,  Dairen. 

Superintendent,  auditing  and  statistical 
section I.  Tadane,  Dairen. 

Superintendent,  communications  section ..T.  Mimoto,  Dairen. 

Superintendent,  Shakako  workshops H.  Mori,  Dairen. 

Superintendent,  wharf  offices T.  Narasaki,  Dairen. 

Superintendent,  Shakako  harbor  worka. .  .K.  Yamaji,  Dairen. 

In  charge  of  Mukden  office Col .  Sato,  Mukden. 

In  charge  of  Harbin  office S.  Shoji,  Harbin. 

In  charge  of  Cheng  Chiatino  office M.  Hayakawa,  Cheng  Chiatino. 

Mining;  department: 

Director S.  Kabayama,  Dairen. 

Chief  engineer  and  superintendent,  Fushun 
collieries .Dr.  S.  Yonekura,  Fushun. 

Superintendent  coal  sales  section S.  Shirosaki,  Dairen, 

Chairman  Anshan  Steel  Works,  preparation 
committee Y.  Hatta,  Dairen. 

Superintendent,  geological  section C.  Kido,  Dairen. 

I  and  department: 

Director K.  Kaino,  Dairen. 

Central  laboratory — 

Acting  superintendent K.  Kaino,  Dairen. 

Chief,  applied  chemistry  division Y.  Suzuki,  Dairen. 

Chief,  analytical  division K.  Higuchi,  Dairen. 

Chief,  filature  and  weaving  division  .  .M.  Matsuda,  Dairen. 
Chief,  electrical  chemistry I.  Namari,  Dairen. 

Superintendent,  land  section K.  Musai,  Dairen. 

Superintendent,  hygienic  section Dr.  K.  Kasai,  Dairen. 

Superintendent,  agricultural  experimental 
station J.  Tochinai,  Kungchuling. 

Director,   South  Manchuria  Medical  Col- 
lege   Dr.  Yamada,  Dairen. 

Principal,    South    Manchuria    Technical 
School K.  Kori,  Dairen. 

Librarian,  railway  library. F.  Shimamura,  Dairen, 

Superintendent,  reference  miiseum F.  Shimamura,  Dairen. 

\f  counting  department: 

Director. R.  Kawamura,  Dairen. 

Accounting  secretary S.  Mukaibo,  Dairen. 

Superintendent,  stores  section K.  Akiyama,  Dairen. 

Superintendent,  electrical  plants H.  Amemij'a,  Dairen. 

Superintendent,  gas  works S.  Tomitsugu,  Dairen. 

TOKYO  BRANCH  OFFICE. 

Director R.  Tatsui,  Tokyo. 

Secretary M.  Yamagaki,  Tokyo. 

V  hief  accountant • - M.  Ohwada,  Tokyo. 


272 


.RAILWAY  MATEBIALS,  EQUIPMEKT,  AKD  SUPPLIES. 


Director........ 

Secretary 

Traffic  manager. 
Superintendent,, 
Siiperintenclent, 
Superintendent, 
Superintendent, 
Superintendent, 


KOEBAN  1AILWAY8  SECTION. 

..-....•.•.,...«,.,.,..,.. .»i.  JSfc.ubo.  Seoul. 

-•■ •- K.  Washio,  Seoul. 

• -M.  Audo,  Seoul, 

workshop  section .M.  Kurosawa,  Seoul. 

accounting  section  (stores). .  .M.  Kata,  Seoul. 

construction  section. H.  Kawayi,  Seoul. 

Seishin  construction  office... Y.  Hisakado,  Seishin. 
Wonaan  construction  office...  S.  I  to,  Wonsan. 


EIMN-CHANGCHUN  RAILWAY. 

Head  office:  Changchun.    Cable  address:  Kichang  Railway. 

Managing  difector.. Kon  To,  Changchun. 

Eni^meer  in  chief J.  Magario,  Changchun. 

Chief  of  traffic Changchun. 

Chief  accountant J.  Uchigaki,  Changchun. 

SSUPINGKAI-CHENGCHIATUN  RAILWAY. 

Head  office:  Ssupingkai. 

ManMring.director Yu  Yu,  Ssupingkai. 

Chief  engineer J.  Fujine,  Ssupingkai 

diief  accountant , . Ssupingkai. 

llAlflLA  RAILROAD  CO.  (LTD.). 

He»d  office:  Manila,  Philippine  Islands. 

Krector Manuel  Quezon,  Manila. 

1^0 Francisco  Ortigas,  Manila. 

1^ J.J.  Rafferty,  Manila. 

^ - A.  P.  Fitzsimmons,  Manila. 

^- •  - Milton  E.  Springer,  Manila. 

^ Felipe  Cabailero,  Manila. 

^ J.  F.  Fernandez,  Manila. 

Do. Alesandro  Ruiz,  Manila. 

Do. . . E.J.  Westerhouse,  Manila. 

ssident Manuel  Quezon,  Manila. 

president Francesco  Ortigas,  Manila. 

Secretary.. P.  A.  Alexander,  Manila. 

Treasurer J.  H.  Allen,  Manila. 

Comptroller W.  E.  Brown,  Manila. 

General  manager E.  J.  Westerhouse,  Manila. 

Traffic  manager. M.  D.  Roger,  Manila. 

Superintendent  of  transportation T.  McD.  Rice,  Manila. 

Superintendent,  Northern  Lines. A.  Casteller,  Manila. 

Superintendent,  Southern  Lines C.  U.  Russell,  Manila. 

Superintendent,  Alhaylim  Line .T.  C.  Macgregor,  Manila. 

Mechanical  supenntendent. F.  H.  Dodd,  Caloocan,  Manila. 

Master  car  builder J.  Smedley,  Caloocan,  Manila. 

Foreman  of  workshops F.  Kingsland,  Caloocan,  Manila. 

Electrician. F.  IL  Haden,  Caloocan,  Manila. 

Chief  ennneer E.  S.  Von  Hontkowski,  Manila. 

Principal  aimatiint  engineer H.  W.  Corp,  Manila. 

Signal  engineer. H.  Fielding,  Manila. 

Superintendent  of  stores. W.  Wallace,  Caloocan,  Manila. 

PHILIPPINE  RAILWAY  CO. 

New  York  office:  43-49  Exchange  Place.    Head  office  in  Philippine  Islands,  Iloilo. 
Ckble  address:  Philrayco,  New  York  and  Iloilo. 

Chairman  of  board William  Salomon,  Middlebury,  Vt. 

JreflWent Charles    M.    Swift,    New  York  City. 

Vice  president Clarence    Lewis,  New  York  City. 

Do J.  H.  Pardee,  New  York  City. 


APPENDIXES.  273 

Secretary-treasurer J.  W.  Moffat,  New  York  City. 

Purchasing  agent .  . .- E.N.  Chilson,  New  York  City. 

Vice  president  and  general  manager R.  R.  Hancock,  Iloilo,  P.  I. 

Auditor E.  G.  Carrera,  Iloilo,  P.  I. 

Traffic  agent George  P.  Linden,  Iloilo,  P.  I. 

Purchasing  agent C.  B.  Sawyer,  Iloilo,  P.  1. 

General  attorneys Lawrence  &  Ross,  Manila,  P.  I. 

PANAY  DIVISION. 

Trainmaster C.  B.  Sawyer,  Iloilo,P.  I. 

Master  mechanic I.  T.  Brand,  Iloilo,  P.  I. 

Storekeeper H.  H.  Sherrard,  Iloilo,  P.I, 

CEBU  DIVISION. 

Superintendent C.  Jones.  Cebu,  P.  I. 

Master  mechanic M.  E.  Cleland,  Cebu,  P.  I. 

Storekeeper J.  H.  Renner,  Cebu,  P.  I. 

MANILA  ELECTRIC  RAILROAD  &  LIGHTING  CORPORATION. 

New  York  office:  43-49  Exchange  Place.    Head  office  in  Philippine  Islands: 
Manila. 

President Charles  M.  Swift,  Middlebury,  Vt. 

Vice  president J.  H.  Pardee,  New  York  City. 

Secretary J.  W.  Moffat,  New  York  City. 

Treasurer R.  B.  Marchant,  New  York  City. 

Vice  president  and  general  manager C.  N.  Duffy,  Manila,  P.  I. 

Assistant  general  manager L.  S.  Cairns,  Manila,  P.  I. 

Manager  railway  department W.  R.  McGeachin,  Manila,  P.  I. 

Manager  lighting  department J.  C.  Rockwill,  Manila,  P.  I. 

Superintendent  tracks C.  E.  Haygood,  Manila,  P.  I. 

Superintendent  shops F.  J.  Ten,  Manila,  P.  I. 

Chief  engineer  power  plant B.  H.  Blaisdell,  Manila,  P.  I. 

General  attorneys Lawrence  &  Ross,  Manila,  P.  I, 

106229'— 19 IB 


\m 


APPENDIXES. 


275 


f 


Apppflii  2.^CHINESE  EASTERN  RAEWAY. 

CHMISI  mrnmBM  MMMMAX  AWHITST  27/SlPTOfB,lB  8,  1S96. 

[Traiislation  from  Preacli.J 

ofKlk^^ZtZ^  Kmg-rhen,  minister  plempotentiary 

01  ills  Alajesty  llie  Emperor  of  China,  at  St.  Petereburg,  acang  by  virtueof  an  impmii 

edict,  dated  Knaiig  Hbu,  22d  war.  7th  month,  20th  day  (Auguet  16/28  1896^  of  tfeme 
^  TK  ^?l •■*'*''  R"8»-.Chine6e Bank,  of  the  otherpart,  it  ha8"been  ngr'eed  a«  follows:' 

The  1  hmese  Government  mil  pay  the  sum  of  5,000,000  kuping  Wis  to  the  Russo- 
Chmcse  Bank,  and  will  participate  in  proportion  to  this  payment  in  the  profits  and 

lowes  of^  the  bank,  on  condition*  set  forth  in  a  special  contraJT  ^ 

rjie  Chinese  Government  having  decided  npon  the  construction  of  a  railway  line 
estai:>liijing  direct  communication  between  the  city  of  Chita- and  the  Ruseian  Soutli 
Vmun  Railway,  entrmts  the  wnstruction  and  opemtion  of  tMa  railwmy  to  the  Ruseo- 
Chmwe  Bank  upon  the  followinir  conditions:  ^ 

1 .  The  Ru8K»-C%in«e  Bunk  will  eetabltsh  for  the  construction  and  operation  of  thia 
'laiiway  a  compwiy  under  the  name  of  the  Chinese  Eastern  Railway  CoT 

The  F«l  wMrh  this  company  mil  employ  will  be  given  to  it  by  th©  Chinese  Govern- 
fnent.     1  he  atjjtutes  of  this  company  will  be  in  conformity  with  the  Riia«ian  umasm 

Mu3f  rrlT'^TK  ^t""  ^^f^Jo^P^^y  can  be  acquired  only  by  Chin^o 

Mussian  subjecte.  The  preiident  of  tliia  company  will  be  named  by  the  Chinese 
Government  but  paid  by  the  company.  He  may  We  his  residence  in  Peking. 
«f  f  tr^ii  !!.l''**  duty  of  Ae  pre«d«it-_to  eee  particttlarly  to  the  scrupulous  fulfiiimeni 
of  the  oM^gations  of  the  bank  and  of  tlie  railway  company  toward  the  Chinee©  Govern- 
ment,  lie  will  furtheniiore  be  reeponsible  for  the  relatione  of  the  bank  and  of  the  raU- 
way  company  mth  Ae  Chinwe  Govermiient  and  the  central  and  local  authorities. 

The  president  of  the  Cbinese  Eastern  Railway  Co..  will  likewise  be  responsible  for 
examining  all  accountB  of  the  Chinese  Government  with  the  Russo-Chinese  Bank 

To  facilitate  m  local  negotiations,  the  Russo-Chinese  Bank  will  maintain  an  a<^ent 
St  X  eKing.  ° 

hv^ihe^Ti  W  rl.^^^^  ^y  tlie  deputies  of  the  president  (named 

ortbe  mllTB^?ZST^.T±f  ^^f  company,  in  nnitual,agreement  with  the  engineers 

Of  the  toinpany  and  the  local  authontiee.  In  laying  out  this  line,  cemeteries  and 
toml„)s,  as  also  towns  and  villages,,  should,  so  far  as  poSble,  be  avoided  and  passed  by. 
i.  Ihe  c-ompany  must  commence  the  work  within  a  period  of  12  months  from  the 
day  on  wMch  this  contract  sliall  be  sanctioned  by  imperial  decree,  and  must  so  carry 
It  on  that  the  whole  line  will  be  finished  within  a  penod  of  six  years  from  the  day  on 
which  the  route  of  the  line^is  definitely  established  and  the  lands  necessary  therefor 
are  placM  at  the  disposal  of  the  company.  The  gauge  of  the  line  should  be  the  same 
as  that^of  the  Russian  railways  (5  Russian  feet,  a'bout  4  feet  2|  inches  Chinese). 

4.  The  Cliinese  Government  will  gi,ve  orders  to  the  local  authorities  to  assist  the  corn- 
pan)  to  the  extent  of  their  ability  tt  obtaining,  at  current  pricea,  the  materials  neces- 
sary for  the  constructipn  of  the  railway,  as  also  latorers,  means  of  transport  by  water 
"  ™J*^rJf  ?^*  ^'*i?  P'^^^ons  necessary  for  the  feeding  of  men  and  anim,al8  etc 

The  Lhinese  Government  should,  as^  needed,  'take  measures  to  facilitate  such  trans- 
■portation. 

5.  The  Chinese  Government  will  take  measuree  to  aaeure  the  safety  of  the  railway 
and  of  the  persona  in  Its  service  against  any  attack. 

The  company  will  have  the  right  to  employ,  at  will,  as  many  foreigners  or  natives 
.118  It  may  find  neceseary  for  the  purpose  of  administration,  etc. 

Criminal  cases,  lawsuits,  etc.,  upon  the  territory  of  the  railway,  must  be  settled  by 
the  IcK-al  authorities  m  accordance  with  the  stipulations  of  the  treaties. 

6.  The  lands  actually  necessary  for  the  construction,  operation,  and  protection  of 
tHe  line,  m  also  the  lands  m  the  vicinity  of  the  line  necea.sary  ft>r  procurring  sand  stone 
lime,  etc.,  will  be  turned  over  to  the  company  freely,  if  these  lands  are  the  property 


of  the  State;  if  they  belong  to  individuals,  they  will  l>e  turned  over  to  the  company 
either  upon  a  single  payment  or  upon  an  annual  rental  to  the  proprietors,  at  current 
prices.  The  lands  belonging  to  the  company  will  be  exempt  from  all  land  taxes 
("impot  foncier"). 

The  company  will  have  the  absolute  and  exclusive  right  of  administration  of  these 
lands.  ("La  societe  aura  le  droit  absolu  et  exclusif  de  I'administration  de  sea 
terrains.") 

The  company  will  have  the  right  to  construct  on  these  lands  buildings  of  all  sorts, 
and  likewise  to  construct  and  operat>e  the  telegraph  necessary  for  the  needs  of  the  line. 

The  income  of  the  company,  all  its  receipts,  and  the  charges  for  the  transportation 
of  passengers  and  merchandise,  telegraphs,  etc.,  will  likewise  be  exempt  from  any  tax 
or  duty.  Exception  is  made,  however,  as  to  mines,  for  which  there  will  be  a  special 
arrangement. 

7.  All  goods  and  materials  for  the  construction,  operation,  and  repair  of  the  line  will 
be  exempt  from  any  tax  or  customs  duty  and  from  any  internal  tax  or  duty. 

8.  The  company  is  responsible  that  the  Ruseian  troops  and  war  material,  dispatched 
in  transit  over  the  line,  will  be  carried  through  directly  from  one  Russian  station  to 
another,  without  for  any  pretext  stopping  on  the  way  longer  than  is  strictly  necesBary. 

9.  Passengers  who  are  not  Chinese  subjects,  if  they  wish  to  leave  the  territory  of  tho 
railway,  should  be  supplied  with  Chinese  passports.  The  company  is  responsible  that 
passengers  who  are  not  Chinese  subjects  should  not  leave  the  territory  of  the  railway 
if  they  do  not  have  Chinese  passports. 

10.  Passengers'  baggage,  as  well  as  merchandise  dispatched  in  transit  from  one 
Russian  station  to  another,  will  not  be  subject  to  custom  duties;  they  will  likewise  l)e 
exempt  from  any  internal  tax  or  duty.  The  company  is  Ixtund  to  dispatch  such  mer- 
chandise, except  passengers'  baggage,  in  special  cars,  which,  on  arrival  at  the  Chinese 
frontier,  will  \ye  sealed  by  the  office  of  the  Chinese  customs,  and  can  not  leave  Chinese 
territory  until  after  the  office  of  the  customs  shall  have  satisfied  itself  that  the  seals  are 
intact;  should  it  be  established  that  these  cars  have  been  opened  on  the  way  without 
authorization,  the  merchandise  would  be  confiscated. 

Merchandise  imported  from  Russia  into  China  by  the  railway,  and  likewise  mer- 
chandise exported  from  China  into  Russia  by  the  same  route,  will  respectively  pay 
the  import  and  export  duty  of  the  Chinese  Maritime  Customs,  less  one-third. 

If  merchandise  is  transported  into  the  interior  it  will  pay  in  addition  the  transit 
duty — equivalent  to  a  hsdf  of  the  import  duty  collected— which  frees  it  from  any 
further  charge. 

Merchandise  not  pajdng  the  transit  tax  will  be  subject  to  all  the  barrier  and  likin 
duties  imposed  in  tne  interior. 

The  Chinese  Government  must  install  customs  offices  at  the  two  frontier  points  on 
the  line. 

11.  The  charges  for  the  transportation  of  passengers  and  of  merchandise,  as  well  as 
ft)r  the  loading  and  unloading  o!  merchandise,  are  to  be  fixed  by  the  company,  but  it 
i-'  obliged  to  transport  free  of  charge  the  Chinese  official  letter  post,  and,  at  half  price, 
1  Idnese  land  or  sea  forces  and  also  Chinese  war  materials. 

12.  The  Chinese  Government  transfers  to  the  company  the  complete  and  exclusive 
ri  At  to  operate  the  line  on  its  own  account  and  risk,  so  that  the  Chinese  Government 
v>ii\  in  no  case  be  responsible  for  any  deficit  whatsoever  of  the  companv,  during  the 
time  alloted  for  the  work  and  thereafter  for  a  further  80  years  from  the  day  on  which 
the  line  is  finished  and  traffic  in  operation.  Thia  period  having  elapsed,  the  line,  with 
all  its  appurtenances,  will  pass  free  of  charge  to  tne  Chinese  Government. 

At  the  expiration  of  36  years  from  the  day  on  which  the  entire  line  is  finished  and 
traffic  in  operation,  the  Chinese  Government  will  have  the  right  to  buy  back  this  line 
upon  repaying  in  full  a,ll  the  capital  involved,  as  well  as  all  the  debts  contracted  for 
this  line,  plus  accrued  interest. 

[f — in  case  the  profit  realized  exceeds  the  dividends  allowed  to  the  shareholders— a 
l»art  of  such  capital  is  repaid,  that  part  will  be  deducted  from  the  price  of  repurchase. 
In  no  erne  may  the  Chinese  Government  enter  into  possession  of  this  line  before  the 

company  will  make 


JCuang  Hsu,  22nd  year,  8th  month,  2nd  day. 


Berlin,  August  27/September  8,  1896. 
Russo-Chinese  Bank. 

ROTHSTEIM. 

PKINCK    OCJKIiTOHSKT. 


lAILWAY  MATERIALS,  EQUIPMENT,  AWD  SUPPLIES. 


APPENDIXES. 


277 


ACIIIBSliDKlfl! 


COHCaiWllfO    SOUTHSHH    MAMCHWEIAlf' 

CHIllXai  BASTEEH  E^AILWAT  CO'. 

ITmnslilioE  from  Chinea©.] 


BBAWOH     OF 


Phbambli.,— Hei  (Cli:ing-chT#M)  tmliaffladoT  (?)  of  the  Imperial  Chinese  Govem- 
ment,  and  Yang'  (-ju),  mwiister  of  the  Imperial  Cliinese  Governmeiit  to  Rueaia,  have 
recei'ved  an  imperial  decree  of  the  7th  of  'the  Fifth  Moon,  XXlV  vear  of  Kuang  Hbh, 
that  is  the  13th  of  June,  1898,  Rnssian  calendar  '(June  25,  1898,,  new  etyle).  authorizing 
theoi  to  dmw  up  a  contra<:'t  with  the  Chinese  Esietem  Railway  Co  in  accordance  with 
the  provisions  of  the  treat^fhetween  China  and  Ru»ia,  enteral  into  at  Peking'on  the 
6th  of  Ihe  Third  Moon,  XXIV  year  of  Kuang  Hmi,  i.  e.  March  15,  1898,  Russian  cal- 
endar (March  27,  1898,  N.  S.)  and  those  of  the  apecial  supplementary  articles  to  the 
«nie,  agreed,  upon  .»t  St.  Petcrshurg  on  the  17th  of  the  Intercalary  Third  Moon- 
April  25,  1898— (May  7,  1898,  N.  S.)  to  the  effect  'that,  from  the  date  of  the  ,8igning  of 
T**4-^!?^'  "^y  the  Chineee  Government,  in  accordance  with  the  permission  given  in 
'the  aXII  year  of  Kuang  Hsu  (1896)  tO'  the  Chinese  Eastern  'Railway  Co.  to  construct 
'Certain  rai,lway8,  a  branch  line  might  he  built  and  opemted.  which  should  begin  at  a 
iBtation,  t»'  be  selected  on  the  m,ain  line  of  the  Chineae'  E,aati5ni  'Railway,  and  extend 
to  the  aeaports,  Dalny  'and  Port.  ,Arthnr  in  the  Liaotung  'Peninsula:  the 'said  branch 
Iiiie  to  he  dealt  with  in  careful  com'pliance  with  th,e  terms  of  the  'Contract  of  the  2d 
of  the  Eighth  Moon,  XXII  Year  of  Ku,ang  Han,  August  27,  1896,  Russian  calendar 
(bept.  8,  1896,  N.  S.)  between  t.he  'Chinese  Govefn,ment  and  the  Russo-Chinese  Bank 

In  accord,:ance  'W,i,th  the  foregoing  'provisions  the  following  ,articles  relating  to  the 
conetnictioE  ,and  ©peration  of  a  railway  through  Manchuria  are  now  agreed  upon. 
to-wit:  '^ 

AimcLE  I.  This,  branch  of  the  Chine» Eastern  Railway,  extending  to  the  seaports 

of  Port  Arthur  ,and,  Dalny,  shall  be  known  ,a3  the  Southern  Manchurian  Branch  of  the 
Chinese  Eastern,  Railway, 

A.BT,,  IL  In  aC'Cord,ance'  with  article  IV  of  the  contract  of  the  2d  of  the  Eightli 
Moon, , AXII  yearof  Kuang  Hsu,  A'upist  27, 1896  (Sept.  8, 1896,  N.  8.),  ^hich  pro^dei 
that  the  Chinese  Government  sh,all  take  steps  as  occasion  may  require  to  facilitate  the 
bringing  m  of  the  ,material8  need^ed,  for  the  constniction  of  the  line,  whether  transported 
by  water  or  by  land,  it  is  now  :agreed  that  the  company  may  employ  steamers  or  other 
iresuelii,  and  such  vessels  flying  the  company''s  iag'  shall  be  permitted  to  proceed  up 
the  LifM>  River  or  ,any  of  its  branches,  and  to  enter  Yingkow  (the  port  of  Newchwang) 
or  any  port  in  the  neutral  territory  which  may  prove  advantageoua  to  the  work  of 
constructing  thia  Ime,  and  m,ay  there  diacharge  cargo. 

Abt.  III.  In  order  to  facilitate  the  bringing  in  by  the  Chinese  Baut^pi  Eailway  Co. 
of  the  materials  and  provisions  ,n,eeded  in  the  construction  of  the  Southern:  Ilimdiurian 
,Branch,  it  w  permitted  the  company  to'  build  temporary  branch  lines" from'  this  road 
to  Yingkow  mnd  to  mB^mM  in  the  neitial  lone,  but  when  the  work  of  building  the  liAe 
is  completed  and  the  'road  'is  open  lor  traffic  the  company  m'uat  at  the  notice  of  the 
thmeee  Government  re,move  theaO'  branch  milwaye;  that  m  to  nay,  within  eig'ht  years 
from  tlie  date  of  the  survev  and  determination  of  the  line  and  the  appropriatwn  of  the 
land  for  ite  conatruction  the*  tempomry  branch  lines  must  be  removed. 

Amt  IV.  In  ,accoid,ttnce  with  the  permiaaion  granted  to  the  company  in  the  XXIII 
year  of  Kuang  H,8U  (1897)  to  cut  timber  ,and  mine  coal  for  tlie  use  of  the  raUway, 
It  la  now  agreed  to  allow  the  company  to  ,fell  timber  at  its  pleasure  in  the  forests  on 
foyernment  lands,  each  tree  to  be  paid  for  at  a  price  to  be  fixed  by  the  engineer  in 
chief  or  his  deputy  in  coMultotion  with  the  local  authorities,  but  not  higher  than  the 
local  naarket  rate.  But  no  foreata  on  property  in  the  pro\Tnce  of  Shengking  belonging 
to  the  imnerial  ,fam,il,'y,  or  on  sites  that  affect  tlie  *'  feng-sliui, "  being  under  the  dSect 
control  of  the  Peking  'Government  may  be  injured  or  disturbed. 

The  comp,any  sliall  ,alaO'  be  ,al„lowed  in  the  regions  traversed  by  this  branch  line  to 
,m.nie  roch  coal  m  may  be  need'ed  for  the  con,st,rnct,ion  or  operation  of  the  railway  the 
price  of  which  coal  ,shall  'be  fixed  by  the  engineer  in,  chief  or  his  deputy  in  consulta- 
tion with  tlie  ,l,oc;,al  authorities  but  ,8nall  not  exceed  the  ro'yalty  paid  by  other  parties 
m  the  same  locality.  ^     ^  i         j  i 

Abt.  'V.  'Widiin  the  'leased  terri,tory  on  the  Liaotung  Peninsula  Russia  may  fix  the 
cuitome  taiiff  t»  suit  itaelf,  and  China  m,ay  levy  and  collect  duties  at  the  boundaries 
on  til  goods,  going  from  the  leaaed  territory  to  the  interior  or  from  the  interior  to  the 
leaied  terntory.  In  dealing  with  thi,s  matter  China  may  a,rrange  with  Russia  for  the 
lattjr  Government  to  establwh  the  customs  at  Dalny  and  from  the  date  of  the  opening 
of  the  said  port  to  mtemational  trade  to  appinnt  the  Ch,iiie8e  Eastern  Railway  Go  to 
•ct  tt  the  agent  O'f  the  Chinese  Im'perial  Board  of  Revenue  to  open  and  manage  the 
cwtoms  and  ,u  ita  behal,f  to^  levy  and  collect  duties.    Th©  ,eaid  customs  shall  be  under 


the  sole  control  of  the  Poking  Government,  to  which  the  said  agent  shall  from  time  to 
time  report  its  management.  In  addition  there  shall  he  appointed  a  Chinese  civil 
official  to  be  stationed  as  deputy  at  the  customs.  All  baggage  of  paasengers  and  all 
^oods  brought  from  railway  stations  within  the  Russian  boundaries  by  the  said  line 
into  the  territory  leased  to  Russia  in  the  liaotung  Peninsula,  or  shipped  from  the  said 
leased  territory  into  the  Russian  Empire  shall  be  entirely  free  of  all  customs  duties  as 
well  as  of  all  inland  transit  and  likin  dues.  Goods  shipped  by  rail  from  the  interior  of 
China  to  the  leased  territory  or  from  the  leased  territory  to  the  interior  must  pay  export 
or  import  duties  respectively  according  to  the  Imperial  Maritime  Customs  tariff  with- 
out increase  or  reduction. 

Art.  VI.  The  company  may  at  its  pleasure  assume  the  reeponaibility  of  establishing 
a  line  of  seagoing  vessels  flying  the  company's  flag,  to  he  operated  under  the  regula- 
tions for  foreign  mercantile  shipphig.  Should  these  vessels  or  the  management  of 
the  business  in  connection  therewith  occasion  any  financial  loss,  the  Chinese  Govern- 
ment shall  not  be  held  responsil>le.  Passenger  fares  and  freight  rates  shall  be  estab- 
lished by  the  company  to  suit  itself,  and  shall  in  no\\rifie  concern  the  railway.  The 
period  of  the  management  of  the  said  enterprise  being  of  course  unlimited,  the  pro- 
visions of  Article  Xll  of  the  Contract  between  the  Chinese  Government  and  the  Rusao- 
Chinese  Bank  of  the  XXII  year  of  Kuang  Hsu  (1896)  fixing  a  price  for  the  purchase  of 
tlie  railway,  and  a  date  for  its  reversion  to  Chma  without  payment,  shall  not  apply 
to  this  unoertaking. 

Art.  VII.  As  to  the  location  of  the  Southern  Manchurian  Railway  Line,  and  the 
determination  of  the  places  through  which  it  shall  pass,  it  will  be  necessary  to  wait 
imtil  the  engineer  in  chief  shall  have  surveyed  the  route  through  Manchuria  and 
made  report  of  the  conditions  to  the  head  office  of  the  company,  when  the  company  or 
ita  agent  in  Peking  shall  consult  with  the  director  general  of  the  railway  and  decide 
the  matter. 

Appended  is  the  text  of  the  above  agreement,  as  telegraphed  by  the  Chinese  Eastern 
Raifway  Co.  to  the  Tsung  Li  Yamen. 

Preamble  of  Agreement. — In  accordance  with  treaty  of  Peking  of  6th  of  Third 
Moon  and  special  articles  of  Intercalary  Moon,  extension  of  Chinese  Eastern  Railway 
Co.,  to  build  and  operate  a  branch  line  from  station  to  be  selected  on  main  line  to 
seaports  Port  Arthur  and  Dalny  in  Liaotung.  Careful  compliance  with  provisions  of 
Russo-Chinese  Bank's  contract.    Supplementary  articles  proposed  as  follows: 

1.  This  branch  line,  extending  to  Port  Arthur  and  Dalny,  shall  be  known  as  the 
Southern  Manchurian  Branch  of  Chinese  Eastern  Railway. 

2.  Original  agreement,  article  IV,  (provides)  Chinese  Government  to  take  steps  to 
facilitate  transport  by  land  or  water  of  materials  for  construction  of  railway.  (Com- 
pany permitted  to  employ  steamships  or  other  vessels  flying  company's  flag  which 
may  enter  Liao  River  and  branches  and  proceed  to  Yingkow  and  all  seaports  in  neu- 
tral zone  and  there  unload  materials. 

3.  In  order  to  facilitate  shipment  of  materials  and  provisions,  company  permitted  to 
construct  temporary  branch  lines  from  Southern  Manchurian  line  tolmigkow  and 
seaports  in  neutral  zone,  but  when  the  work  of  building  railway  is  completed  and 
whole  line  open  to  traffic,  all  these  temporary  branch  lines  to  be  removed  at  pleasure 
of  Chinese  Government. 

4.  The  Chinese  Government  in  First  Moon  last  year  granted  permission  to  obtain 
coal  and  wood.  Company  now  allowed  to  fell  timber  in  forests  on  government  lands, 
price  of  each  tree  to  be  fixed  by  local  authorities  in  conference  with  engineer  in 
chief,  but  not  to  be  made  higher  than  local  market  rate.  But,  forests  in  province  of 
•^hengking,  property  of  imperial  family,  affecting  "feng-shui,"  under  control  of 
Peking  Government,  not  allowed  to  be  touched. 

Company  also  permitted  in  localities  through  which  this  branch  line  pajsses  to 
ndne  coal,  payment  for  same  also  to  be  determined  by  conference  but  not  to  be  more 
than  paid  by  others. 

5.  Within  the  leased  territory  Russia  to  determine  for  itself  the  customs  tariff. 
China  must  collect  duties  on  goods  at  the  boundar>'  of  leased  territory.  With  respect 
to  this  matter  arrangements  may  be  made  permitting  Russia  on  opening  of  Dalny  to 
international  trade  to  establish  the  customs  at  that  port  and  appoint  the  company  to 
act  as  a^ent  of  Chinese  Imperial  Board  of  Revenues,  levying  and  collecting  duties, 
under  direct  control  of  Peking  Government,  and  reporting  its  management  to  same 
from  time  to  time.  Goods  coming  from  railway  stations  %vithin  the  Russian  boundaries 
into  the  leased  territory  or  from  the  latter  into  Russia  to  be  free  of  all  customs  duty  and 
likin  charges;  those  going  by  railway  from  leased  territory  into  the  interior  of  China 
or  from  interior  to  leased  territory  to  pay  duty  according  to  tariff  of  Imperial  Mari- 
time Customs  without  increase  or  reduction. 

6.  Company  allowed  to  establish  line  of  merchant  steamships  flying  company's 
iag.    If  any  financial  loss,  China  not  responsible;  this  businees  not  to  involve  mo 


M 


^ 


278  aAILWAT  MATERIALS^,  IQUIPMBHT,  AWB  SUPPLIES. 

wilway  and  i»t  to  ba  dealt  ■with  iincier  proviaiom  of  ortgi,iial  contmct  fixim?  priea 

lor^piircluw;*  (of  railway)  md  date  for  reveraiom  (witlioiit  pa>-meiit).  '  ' 

i.  Ixcatioii  of  line  of  Southern  Maiichurian  Rftilway  and  deti^iroination  of  nlwcm 
thjmugh  which  it  wiirpaa  to  awail  iurveyB  in  M'aiic!i.iiria  by  enmnoer  in  chief  when 
companjf  Of  ita  .agent  in  Peking'  will  conialt  with  director  general  and  decide. 
The  above  is  tmnslated  by  Cheng  Jii-chiang  from,,  the  complete  text  of  letter  received 

day  of  Fourth  Moon,  kuaiw  Bill,  X,XIV  Year  (May  22,  1898). 

XoTi  — The  ,8:ul»tonce  ofthe  agreement  waa  t<aegniphed  on  May  22»  1898,  and  the 
final  t«,t  was  prepared  on  Jnne  24^  1898.  Th,o  only  important  change  was  the  addition 
in  the  filial  text  of  article  YjjM-ovidiug'  for  the  appointment  of  a  Chinese  deputy  to  be 
stationed  at  the  customa  ,in,  ,lJaIny.  '*^    ^ 

WAlfOTB„S  or  TMM  CMIIIISB  ,lAS!naif  EAILWAY  CO. 


1 .  On  the 
inew  (lOve 


etrengthnf  the  tgteement  concluded  on  ,.\ugu,8t  27, 189(>,  by  tlie  Imperial 
wnment  wi,th,  tiie  ,E«iio-Chin€ee  Bank,  a  company  is  fomi,ed  under  the 

■name  of  the  t hmeee  EMtem,  Biiil:wfty  Co.,,  for  the  construction  and  wnrking  of  a  mi,l- 

way  within  the _con&i«!  of  China,,  from  one  of  the  points  on  the  ■wcatem  boidere  of  the 
Prwince  of  lleilungkmng  to  one  of  the  points  on  the  eafltcrn  bordera  of  the  Province 
of  kirin,  and  lor  'the  connection  of  this  railway  with  thoee  hranchea  which  the  Imperial 
Kitiwan  Government  will  construct  to  the  Chincae  :frontier  'from  Thina-Baikalm  and 
the  .Southern,  UflBwi , lines. 

The  company  m  empowered;  eubject  to  the  anction  of  the  Chinese  Government. 
to  exploit,  in  connection  with  the  railway,  or  independently  of  it.  coal  minefl.  as  also 
to'  .e»loit  m  China  otb,er  entcjrprinfi^nnning,  incfuatrial,  and  commejcial.  For  the 
working  of  these'  enterpnees,  which  m,ay  be.,  independent  of  the  railway,  the  company 
'liiall,  kec'P  ,accounts  8epani,te  frcm,  tlio«3  o,f  'the  railway. 

Tlie  lbrmaJ..iou  of  th.e  company  shall  be  undertaken' bv  the  Ru880-Ch.ineee  Bank 
^   W''ith  th,e  fornMrtiOB,  of  the  oorajptny  all  rights  and  obligations  .are  transferred  to'  it 
m  rc-g«nl,  to  th,e  construction  and  working  of  the  line  ceded  'in  virtue  of  the'above- 
:i»med  .agreement  o.f  August  27,  1896. 

The  company  shall  bf-  recMiijied  as  form,ed,  on  the  presentation  to  the  Minister  of 
Finance  of  a  warrant  ol  the  Slate  B,ank,  certif>4ng'  the  .payment  of  the  firet  instalment 
on  the  shares.  In  any  case,  sncli  pa,yment  must  he  tmM  not  later  than  two  months 
from  the  day  of  con,firm,ation  of  th,e  present  stetutee. 

The  eu,cc€«dii»  ,iiiiitalnf!ii,te  on  the  shares  shall  be  paid  in  such  order  of  gnid,ation 
that  the  sliarf  s  Bliall  be  Mlir  paid  up  at  their  nominal  value  not  later  than  one  year 
from  the  dav  of  formation  of  the  company. 

Oioiers  of  AawB  of  the  company^  may  .only  be  .Kuawin  and  ai.ineiie  subjects. 

2.^^  In  virtue  of  the  agreement  with  the  Ainese  Ciovemment  the  company  shall 
retain  .possession  of  the  Chinese  Eastern  Raii.w»y  during  the  conrae  of  80  Wre  from 
the  day  of  the  opening  of  tiallic  along  the  whole  'line. 

3.  In  rea«nition  that  the  enterprise  of  the  Chinese  Eastern  Railway  will  be  realized 
•nly  owing  to  the  guaranty  mven  by  the  Russian  Government  in  regard  to  the  revenue 
of  the  line  for  covering  working  expenses  .aa.  well  as  for  e.ff.ecting  the  ohlimtorv  pay- 
ments on  the  Ijonda  (sections  11  .and  W)  :th.e  company  on  its  part  binds^elf  to  the 
.Russian  Government,  d'urmg  the  whole  term  of  tiie  concession,  under  the  followiuF 
.ooliga.tio.ii8:  ^ 

(.xV)  The  Caiinese  ^Eastern  Railway,  with  .all  its.  ..appurtenances  and  rolling  stock.. 
must  be  B}mm  maffltained  in  full  order  for  satlslpng  all  the  .requirement  of  the 
,iervice  ol  the  line  in  rt^gard  to  the  .safety,  comfort,  and  uninterrupted  conveyance  of 
.passengers .an.dmMjd8.  *^  i-j*"!,!..  ui 

(B)  The  toffic  on  the  Chinese  ,Eastei-n  line  must  be  niJiin,'tain,ed  conformably  wiUi 

the  degree  of  tm,ffic  on  'the  Russian  railway  lines  adjoining  the  Chinese  line. ' 
(i,),lli,e  t,rains  of  ,all  descnptions  rnnning  between  the  ,Iluisian,  Tra.ns-Baikal  and 

J^aeiiri  lines  ihall  be  received  by  the  Chinese  Eastern.  'Railway  and  d.ifipatchcd  to 

their  destmation,,  in  full  compleni,e.n.t.,  without  delay. 
(.D)  A.H  thro^ugh  trains,  both  paeaenger  and  Koods,  shall  be  dispatched  by  the  Chinpae 

,Eiistern  ftulway  at  rates  of  speed  not  lower  &m  those  which  £dl  be  ,adopted  on  the 

8i,berian  ,Kailway.  "^ 

(E)  The  Ch,inese  Eastern  Railway  is  l»und  to  establish  and  maintain  a  telegraph 
.^ongj  the  whole  extent  of  the  line,  .and  to^  connect  it  with  the  telegraph  wire  of  the 
Russian  adioimng  railways,  and  to  receive  and  dispatch  without  delay  through  tele- 

:giam:i  sent  from  one  frontier  station  of  the  line  to  another,  as  also  telegrams  sent  from 
R.u.iiia  to  China,  and  conversely. 

(F')_  Should,  wi.:th  th^  development  of  traffic  on  the  Cliineae  Eastern  Railway  its 
tochnical.  oiiaaiia.tion  .prove  insufficient  lor  satiafyiug'  the.  requirements  of  a  .rqjutor 


APPENDIXES. 


279 


and  uninterrupted  paawiiger  and  goods  traffic,  the  Chinese  Eastern  Railway  shall 
immediately,  on  receipt  of  a  notification  on  the  part  of  the  Russian  Railways  to  aug- 
ment its  capacity  to  a  corresponding  degree,  adopt  the  necessary  measures  for  further 
developing  its  technical  organization  and  traffic  on  it.  In  the  event  of  a  difference 
of  opinion  arising  between  the  above-meutioned  railways,  the  Chinese  E»i8tern  Rail- 
way sliall  submit  to  the  decision  of  the  Russian  Minister  of  Finance.  If  the  means 
at  the  command  of  the  Chinese  Eastern  Railway  prove  insufficient  for  carrying  out 
the  necessary  work  of  its  development,  the  boari  of  management  (,f  the  railwa/may 
at  all  times  apply  to  the  Russian  Minister  of  Finance  for  pecuniary  assistance  on  the 
part  of  the  Russian  Government. 

(0)  For  all  transit  conveyance  of  passengers  and  goods,  as  also  for  the  transmisaiitn 
of  telegrams,  there  will  be  established  by  agreement  of  the  company  with  the  Russian 
Government,  lor  the  whole  term  of  dumtion  of  the  concessum,  maximum  tariffs, 
which  can  not  be  raised  without  the  consent  of  the  Russian  Government  during  the 
whole  term  above  referred  to.  Within  these  limits  the  tariffs  of  direct  communica- 
tion, lx)th  for  railway  carriage  and  telegrams,  will  be  fixed  by  the  board  of  management 
of  the  company,  on  the  strength  of  a  mutual  agreement  with  the  Russian  Minister  of 
Finance. 

(H)  The  Russian  letter  and  parcels  post,  as  also  the  official  accompanying  them, 
shall  be  carried  by  the  Chinese  Eastern  Railway  free  of  charge. 

For  this  purpose  the  company  shall  set  apart  in  each  ordinary  passenger  train  a 
carriage  compartment  of  three  fathoms  in  length.  The  Russian  postal  authorities 
may,  moreover,  if  they  deem  it  necessary,  place  on  the  line  postal  carriages,  ayn- 
stnicted  by  them  at  their  own  cost;  and  the  repair,  maintenance  (interior  fitting 
excepted),  as  well  as  the  running  of  such  carriages  with  the  trains,  shall  be  free  of  charge 
and  at  the  cost  of  the  railway. 

The  above-mentioned  engagements,  by  which,  as  already  stated,  the  grant  of  a 
guaranty  by  the  Russian  Government  is  conditioned,  and  the  consequent  reali/^tiou 
of  the  enterprise  of  the  Chinese  Eastern  Railway,  shall  be  binding  on.  the  railway 
until  the  same,  after  the  expiration  of  the  80  years'  term  of  the  concession,  shall, 
without  payment,  become  the  property  of  the  Chinese  Government  (section  29). 
The  redemption  of  the  line  from  the  company  before  the  above-mentioned  term,  in 
accordance  with  section  30  of  the  present  statutes,  shall  not  in  any  way  diminish  the 
effect  of  the  above-specified  engagements,  and  these  latter,  together  with  the  rail- 
way, shall  be  transferred  to  its  new  proprietor. 

4  the  same  manner,  during  the  course  of  the  whole  80  yearn'  term  of  tlie  con- 
cession  (section  2)  the  following  privileges  granted  to  the  railway  by  the  Imperial 
Chinese  Government  shall  remain  in  force: 

(o)  Passengers'  luggage,  as  also  goods,  carried  in  transit  from  one  Russian  station, 
shall  not  be  liable  to  any  Chinese  customs  duties,  and  shall  be  exempt  from  all  internal 
Chinese  dues  and  taxee. 

(b)  The  rates  for  the  carriage  of  passengem  and  goods,  for  telegrams,  ete.,  shall  be 
free  fk>m  all  Chinese  taxes  and  dues. 

(c)  Goods  imported  from  Russia  into  China  by  rail,  and  exported  from  China  to 
Russia  in  the  same  manner,  shall  pay  respectively  an  import  or  export  Chinese  duty 
to  the  extent  of  one-third  less  as  compared  with  the  duty  imposed  at  Chinese  seaport 
customhouses. 

(d)  If  goods  imported  by  the  railway  are  destined  for  conveyance  inland,  they 
shall  in  such  case  be  subject  to  payment  of  transit  duty  to  tlie  extent  of  one-half 
of  tlie  import  duty  levied  on  them,  and  they  shall  then  be  exempted  from  any  addi- 
tional imposts.  Goods  which  shall  not  have  paid  transit  duty  shall  be  liable  to  pay- 
ment of  all  established  internal  carrier  and  likin  dues. 

4.  In  regard  to  the  place  of  acq|uisitit>n  of  material  for  the  requirements  of  the 
railway,  the  company  snail  not  be  liable  to  any  limitations.  If  materials  be  obtained 
beyond  the  confines  of  Russia,  they  shall  on  importation  through  Russian  territory 
be  freed  from  pajTnent  of  Russian  customs  duties. 

5.  The  breadth  of  the  railway  track  must  be  the  same  as  timt  of  the  Russian  lines 
(5  feet). 

The  company  must  commence  the  work  not  later  than  August  16, 1897,  and  conduct 
it  in  such  a  manner  that  the  whole  line  shall  be  completed  not  later  than  six  years 
from  the  time  when  the  direction  of  the  line  shall  be  finally  determined  and  tlie  neces- 
sary land  assigned  to  the  company. 

When  tracing  the  line  of  the  railway,  cemeteries  and  graves,  as  atho  towns  and 
villages,  must,  so  far  as  possible,  be  left  aside  of  the  railway. 

\^iien  effecting  the  connection,  in  accordance  with  section  1  of  these  statutes^ 
of  the  Chinese  Eastern  Railway  with  the  Russian  Trans-Baikal  and  South  Ussun 
lines,  the  company  shall  have  the  right,  with  a  view  of  reduction  of  expenditure, 
of  abstaining  nom  building  its  own  frontier  stations,  and  of  utilizing  the  frontier 


280' 


BMLWAY  MATEMALS,  EQOTFMKNT,  AWD  SUPPLIES. 


APPENDIXES. 


281 


I 


Btotions  of  the  tbove-named  Ruasiaa,  liaa.  The  conditions  on  which  they  ihall  be 
so  iitilizecl  shall  be  deteiinin€<i  by  :iigi«eiii«it  of  the  board  of  the  company  with  the 
'iNiarda  of  the  res'pectiYe  railwayi.  i         . 

6.  The  tariffs  for  the  carriage  of  'panieiigers  and  ^oods,  m  ak>  for  BupplementMy 
carnage  latee,  sliall  be  detarmiiecl  by  'th©  company  itaell  within  the  hmita  indicated 
in  section  3'. 

"7.''Cri:inef.  litigation,  etc.,  m  the  terri't*>ry  of  the  Chinese  Eastern  Railway^ shall 
be  dealt  'with  by  the  local  aiithoritieis,  Chineee  and  Russian,  on  the  bams  of  existrng 

''f"'l*l|'|'*'^  f''l  Jpiifl 

in  .regard  to  the  carriage  of  passengere  and  goods,  the  'reiiponflibility  for  such  con- 
veyance, the  lapse  of  time  for  claimj,  the  order  of  recovering  monev  from  the  railway 
when  adjudged,  and  the  relations  of  the  railway  to  the  public  shall  be  defined  m 
rales  drawn  up  by  the  company  and  establiahed  before  the  opening  of  the  railway 
tinlic;  and  these  rales  shall  be  fram^ed  in  accordance  with  'those  existing  on  the 
Btiasian  railways.  ,  ,  #  •      *i. 

8.  The  Chinese  Government  has  undertalcen  to  adopt  measures  for  securing  the 
■afety  of  the  railway  and  of  all  employed  on  it  afiinai  .iiny  extraneous  attacks. 

The  preservation  of  order  and  decoram  on  the  lands  aasigned  Uy  the  railway  and 
it«:  appurtenances  shall  be  conided  to  TOlice  atenH^  appointed  by  the  company. 

The  company  shall  for  this  purptwe  draw  up  and  establish  police  r^ulations. 

».  The  whole  amount  of  the  capital  of  the  company  shall  be  determined  according 
to  'the  cost  of  co'nstruction,  calculated  on  the  basis  of  wtimates  framed  when  the 
survey  of  the  line  waa  carried  out.  The  foundation  capital  shall  be  charged  with 
(a)  the  payment  of  interest  and  amortiisation  of  the  foundation  capital  during  the 
'Construction  of  'the  railway;  (b)  the  purchase  from  the  Ruasian  Government  of  the 
rcsulta  of  the  surveys  of  the  direction  of  the  railway  to  Manchuria  which  were  made 
by  RiMsian  engineers;  the  sum  payable  trf  these  surveys  will  be  determined  by 
igreement  of  the  Russian  Minister  of  Finance  with  the  company.  The  capital  of 
the  fcompany  shall  be  formed,  by  the  'issue  of  shares  .:and  boadi* 

10.  The  capital  of  the  company  ahall  be  fixed  at  5.000,000  nominal  erodit  loublee, 
.and  divided  into  1,000  shares^  at  5,000  'nominal  credit  roubles. 

The  sharei  are  to  be  'issued  at  their  nominal  value. 

The  piaranty  of  the  Ruaaian  Government  does  not  extend  to  them. 

11.  The  remaining  portion  of  the  capital  of  the  company  will  be  formed  by  the 
imie  of  bonds.  The  bonds  will  be  iiwied  in  meaaure  of  requirement,  and  each  time 
with  the  special  sanctitm  of  the  Minister  of  Finance.  The  nominal  amount  and  value 
of  each  iseparate'  iMiie  of  bonds,  the  'time  and  amdition  of  the  issue,  m  mm  the  form 
of  theae  bonds,  shall  be  subject  to  the  sanction  of  th«  Minister  of  Finance. 

The  Il:uii!ian.  Government  'will,  giianin,tee  the  :inHii««l  on  and  amortisation  of  the 

lionds.  -     _ 

¥m  'the  reaEsation  of  these  bonds  the  com'pany  'm,iiit  have  recourse  to  the  Russo- 
CMnese  Bank,  but  'the  Riisaim,.  'Goveminent  reserves  to  itaelf  the  nght  of  appropri- 
ating' the  bond  loan  at  a  price  which  shall  'be^  determined  between  the  'Company  and 
■the  bank,  and  fa>  'pay  'to  'the  company  the  agreed  amo'unt  in  ready  money. 

12.  As  payments,  at©  recei'ved  for  bonds  gu,ai»nteed  by  the  Russian  Government, 
the  company  shall  be  bound  to  keep  such  sums,  or  interest  bearing  securities  pur- 
chased with  'the  same  by  pemiJ.ssion  of  'the  Russian  ,Minifl.ter  of  finance,  under  the 
ipecial  sij'per\'i8ion  of  the  Russian  Ministry  of  Finance.  ,     •  n     • 

Out  of  the  above  re<;eipt8  the  company  shall  have  the  right  to  make  the  following 

payments:  ••       *     j 

(a)  According  to  actual  fulfilment  of  the  work  in  progreas  and  execution  of  orders, 

and  at  the  time  when  various  expenditure  shall  become  neceesary,  such  payments 

to  be  made  on  the  scale  and  on  the  conditions  specified  in  the  working  estimates. 

(5)  During  the  construction  of  the  line,  of  interest,  as  it  becomes  due  on  the  bonds 

.issued  by  the  companv,  subject  'to  the  conditions  of  their  issue,  and  tlie  company 

shall  pay  the  sums  necessary  for  the  above  purp'Oee  within  the  limits  of  the  amount 

realiaed  by  it  in  'the  emission  of  its  bonds.  ,     ,       ^      ,_  „ 

13.  On  the  pavment  of  the  first  allotment  on  the  shares  the  founder  shall  receive 
temporary  certifica'tes,  on  'which  subsequently,  when  the  board  of  management  of 
the  company  shall  have  been  formed,  the  receipt  of  the  further  installments  on  the 
shares  will 'lie  inscribed,.  .        ,  ^    ^, 

When  'the  shares,  shall  be  fully  'paid  up,  the  temporary  certificates  issued  to  the 
'founders  shaH  be  replaced  by  shares..  ,  ,        , 

The  shares  of  the  company  are  issued  to  bearer,  under  the  signature  of  not  fewer 
than  three  members  of  the  board  of  mafiagmii&t.  To  the  shares  wUlbe^ attached  a 
coupon  sheet  for  the  receipt  once  yearly  under  them  of  any  dividend  that  may  be 

Sayable.    On  the  coupon  sheete  iMJCommg  exhausted  new  sheets  will  be  issued.    A 
ividend  on  the  shares  out  of  the  net  profiti  of  any  year,  supposing  such  accrue, 


shall  be  payable  on  the  adoption  by  the  general  meeting  of  shareholders  of  the  annual 
report  for  that  year,  and  the  dividend  shall  be  payable  at  the  offices  of  the  company, 
or  at  such  places  as  it  may  indicate. 

The  company  shall  notify  for  general  information  in  the  Official  Gazette  and  in 
the  Fiimnce  Messenger,  as  also  in  one  of  the  Chinese  newspapers,  the  extent  and  place 
of  payment  of  the  dividend. 

14.  The  reserve  capital  is  destined; 

(ii)  For  the  capital  repair  of  the  railway,  its  buildings,  and  appurtenances. 

(6)  For  defraying  extraordinary  expenditure  of  the  company  in  repairing  the  railway 
and  its  appurtenar  ?e8. 

The  reserve  capital  of  the  company  is  formed  out  of  annual  sums  put  aside  from 
the  net  profits  of  the  working  of  the  railway  (section  17). 

The  reserve  capital  must  be  kept  in  Russian  State  interest-bearing  seciuities,  or 
in  railway  bonds  guaranteed  by  the  Russian  Government. 

At  the  expiration  of  the  term  of  possession  of  the  railway  by  the  company  the 
reserve  capital  shall  be  first  of  all  employed  in  the  payment  of  the  debts  of  the  com- 
pany, including  among  them  sums  due  to  the  Russian  Government,  if  such  exist; 
and  after  the  del>t8  of  the  companv  shall  have  been  paid  the  remainder  of  the  reserve 
capital  shall  be  divided  among  the  shareholders.  In  the  event  of  the  redemption 
of  the  railway  by  the  Chinese  Government,  the  reserve  capital  becomes  the  property 
of  the  shareholders. 

15.  The  net  revenue  of  the  company  shall  be  the  remainder  of  the  gross  receipts 
after  deduction  of  working  expenses.    Under  these  expenses  are  classed — 

(a)  General  outlays,  including  assignments  toward  pension  and  relief  funds  if 
such  be  established  on  the  line. 

(h)  Maintenance  of  the  staff  of  the  board  of  management,  and  of  all  the  services, 
as  also  the  maintenance  of  employees  and  laborers  not  on  the  permanent  list. 

(c)  Outlays  for  material  and  articles  used  for  the  railway,  as  also  expenditure  in 
the  shape  of  remuneration  for  using  buildings,  rolling  stock,  and  other  various  requi- 
sites for  the  purposes  of  the  railway. 

(df)  Outlays  for  the  maintenance,  repair,  and  renewal  of  the  permanent  way,  works 
of  construction,  buildings,  rolling  stocic,  and  other  appurtenances  of  the  railway. 

(f)  Expenditures  connected  with  the  adoption  of  the  measures  and  instractions 
of  the  board  of  management  for  insuring  the  safety  and  regularity  of  the  railway 
service. 

(/)  Expenditure  for  the  improvement  and  development  of  the  railway,  as  also  for 
creating  and  developing  its  resources, 

16.  Should  the  gross  receipts  of  the  railway  prove  insufficient  for  defraying  the 
working  expenses  and  for  meeting  the  vearly  pajTnents  due  on  the  bonds,  the  com- 
pany will  receive  the  deficient  sum  from  the  'Russian  Government,  through  the 
Minister  of  Finance  of  Russia.  The  payments  referred  to  wOl  be  made  to  the  com- 
pany as  advances,  at  a  rate  of  interest  of  6  per  cent  per  annum.  Sums  paid  in  excess 
to  tile  company,  in  consequence  of  its  demands  and  on  account  of  the  guaranty, 
will  be  deducted  from  succeeding  money  payments. 

On  the  presentation  to  the  general  meeting  of  shareholders  of  the  annual  report 
of  the  working  of  the  railway  for  a  given  year,  the  company  shall  at  the  same  time 
submit  to  the  general  meeting,  for  confirmation,  a  detailed  statement  of  the  sums 
owing  by  the  company  to  the  Russian  Government,  with  the  interest  that  has 
accrued  thereon.  On  the  confirmation  of  this  statement  by  the  general  meeting  the 
boafd  of  management  shall  deliver  to  the  Russian  Government  an  acknowledg- 
ment of  the  company's  debt,  to  the  full  determined  amount  of  the  same,  and  this 
acknowledgment,  until  its  substitution  by  another,  shall -bear  annually  interest 
at  the  rate  of  6  per  cent. 

The  acknowledgment  above  mentioned,  given  by  the  board  of  management  to 
the  Russian  Government,  shall  not  be  subject  to  bill  or  deed  stamp  tax. 

Subjects  of  minor  importance  are  dealt  with  in  the  following  sections: 

17.  Distribution  of  net  profits  of  the  railway. 

18.  Functions  of  the  board  of  management,  the  seals  of  which  will  be  at  Peking 
and  St.  Petersbiu^. 

19.  Constitution  of  the  board,  which  is  to  consist  of  nine  members,  elected  by 
the  shareholders.  The  chairman  is  to  be  appointed  by  the  Chinese  Government. 
The  vice  chairman  is  to  be  chosen  by  the  members  of  the  board  from  among  them- 
selves. 

20.  Order  of  transaction  of  the  business  of  the  board. 

21.  General  meetings  of  the  shareholders,  and  the  subjects  that  shall  come  under 
their  notice. 

22.  Order  of  convening  general  meetings. 


'mOM 


BAILWAY  MATEBIAtS,  IQUIPMENT,  AITD  SUPPLIES* 


23.  Coiidilwiis  uncferwkicli  geiieral  nn»tii:igi  eiiall  be  rocognked  m  legally  held. 

24.  PartmpfttJOEolaliareholdereiiiproceedl^^^ 

25.  liOcal  maiagemeiit  of  railway  when  in  working  o,rder. 
28.  Ijocal  manageaient  of  works  of  coimlruction. 

27.  Qiiestipiui  to  be  sMbmitted  for  confimiatioE  by  tbe  RuMiaii  Minister  of  Finftnco. 

28.  Committee  of  audit. 

29.  hi  accordaiice  with  the  agreement  concluded  with  the  Chinese  Government, 
the  latter,  after  the  expiration  of  80  years  of  pofseaeioa  of  the  railway  by  the  com- 
l»inr,  enters  into  pospciaon  of  it  and  it»  appurtenances. 

The  reserve  and  other  fmids  belonging  to  the  company  shall  be  employed  in 
paying  the  money  due  to  the  Roseian  Government  under  tJie  guaranty  (section  16) 
and  m  satBlaction  of  other  debte  of  the  company,  and  the  remainder  shall  be  dis- 
'tribiited  ftmong  the  shareholden. 

Any  money  that  may  remain  owing  by  the  company  to  the  Russian  Government 
at  the  wcpiration  of  mjmm  m  respect  of  the  giianuity  niiali  be  written  off.  The 
liuflBO-Chineie  Bank  wiH  incur  no  responsibilitv  in  respect  of  the  same 

30.  In  accordance  with  the  agreement  concluded  with  the  Chinese  "Government, 
©n  the  expiration  of  %  yeare  from  the  time  of  completion  of  the  whole  line  and  its 
OTOning  for  traffic,  the  Chinese  Government  has  the  right  of  acquiring  the  line,  on 
refunding  to  the  company  in  fuU  all  the  outlays  made  on  it,  and  on  payment  for 
eyeTythmg  done  for  the  requiremeiitfi  of  the  railway,  such  paymenta  to  be  made 
with  accrued  interest. 

It  follows  as  a  matter  of  course  that  the  portion  ol  the  share  capital  which  has  been 
amortized  by  drawing,  and  the  part  of  the  debt  owing  to  the  Russian  Government 
under  the  guarantee,  and  repaid  out  of  the  net  profits  (section  17),  will  not  constituto 
part  of  the  pnichise  .money. 

In  no  case  can  the  CMiwdo  GovenimeMt  enter  into  posseesion  of  the  railway  before 
It  has.  lodged  'the  necemarjr  wwchaiie.  money  in  the  Russian  Stato  Bank. 

The  pnrchaae  money  lo^ed  by  the  ChineB©  Government  shall  be  employed  in 
paring  the  debt  of  the  company  under  its  bonds,  and  all  sums,  with  interest  owin 
to  tiie  Russian  Govenunent,  the  remainder  ol  the  money  bein£  then  at  the  diai 
of  the  aharehoMeii.  ^  ^  t 


Appendix  3.-PEKING.HANK0W  RAILWAY. 


LOAN  FOB  THE  RAILWAY  FROM  LUKOWEIAO  TO  HANKOW. 

(Provisional)  contract  between  the  Chinese  Railway  Co.  and  the  Soci6t4  Financi^re 
et  Industrielle  Beige  en  Chine,  the  following  has  been  agreed  upon: 

AitTicLE  1.  The  Chinese  Government  has  granted  a  concession  for  the  railway  line 
from  Lukowkiao,  near  the  city  of  Peking,  to  Hankow,  to  the  Chinese  Railway  Co., 
which  has  already  a  capital  of  13,000,000  taels. 

The  said  company  is  authorized  by  the  Imperial  Government  to  negotiate  a  loan  of 
£4,500,000  to  be  applied  solely  to  the  building  and  working  of  the  line  from  Lukowkiao 
to  Hankow;  the  provisions  hereafter  set  forth  must  be  observed  by  the  Chinese  Rail- 
way Co.  as  well  as  by  the  Soci^t^  Financi^re  et  Industrielle  Beige  en  Chine. 

Art.  2.  Said  loan  of  a  nominal  value  of  £4,500,000,  with  10  per  cent  discount, 
or  a  real  value  of  £4,050,000,  is  agreed  to  by  the  Soci^te  Financi^re  et  Indus- 
trielle Beige  en  Chine.  It  will  be  paid  in  four  installments  of  £1,012,500,  representing 
the  real  value  and  at  the  following  dates: 

First  payment:  January  3,  1898. 

Second  payment:  July  3,  1898. 

Third  payment:  January  3,  1899. 

Fourth  payment:  July  3,  1899. 

These  payments  will  be  made  into  a  Belgian  bank  of  Brussels,  chosen  by  the  Chinese 
Railway  Co.,  which  is  at  liberty  to  transfer  this  sum  as  it  sees  fit. 

Art.  3.  The  loan  agreed  to  by  the  Society  Financi^re  et  Industrielle  Beige  en  Chine 
shall  bear  annual  interest  of  4  per  cent.  Said  interest  shall  be  paid  in  January  and 
July  of  each  year. 

Art.  4.  The  Chinese  Railway  Co.  agrees  to  reimburse  the  loan  provided  for  in  the 
present  convention,  after  the  first  10  years,  in  20  annuities  of  £2,225,000,  payable 
yearly  after  January  3,  1909. 

The  payment  of  interest  and  annuities  will  be  made  in  China,  into  a  bank  designated 
by  the  Soci^t6  Financi^re  et  Industrielle  Beige- en  Chine,  and  in  conformity  with  the 
table  of  amortization  annexed  to  the  present  convention. 

Art.  5.  With  the  authorization  of  the  Imperial  Chinese  Government,  the  payment 
of  interest  and  the  refunding  of  the  loan  will  be  guaranteed  by  the  railway  line  from 
Lukowkiao  to  Hankow  as  also  by  all  the  property  and  material  connected  therewith. 

It  is  understood  that  the  guaranties  given  for  the  loan  provided  for  in  the  present 
convention  are  reserved  for  the  subscribers  to  the  present  loan  and  that  the  guaranties 
given  for  subsequent  loans  can  nowise  prejudice  that  now  granted  the  Societe  Finan- 
ci^re  et  Industrielle  Beige  en  Chine. 

Art.  6.  Except  in  case  of  force  major,  the  work  of  building  must  be  finished  and 
the  railway  from  Lukowkiao  to  Hankow  put  in  operation  before  the  expiration  of 
five  years,  that  is  to  say,  of  1903. 

Art.  7.  The  contracting  parties  may  not  invoke  a  state  of  war  existing  in  any  part 
of  the  world  not  to  keap  their  engagements.  If  said  state  of  war  should  exist  in  China, 
the  Belgian  staff  ehall  remain  in  the  employ  of  the  Chinese  Railway  Co.,  unless  its 
assistance  is  asked  for  by  the  Imperial  Chinese  Government. 

Art.  8.  The  Society  Financi^re  et  Industrielle  Beige  en  Chine  shall  choose  an 
experienced,  reliable,  and  honest  engineer  to  represent  it,  who  shall  be  charged  with 
controlling  the  technical  work;  he  shall,  furthermore,  be  charged  with  drawing  up 
plans  and  carrying  them  out  under  the  exclusive  authority  of  the  general  director  of 
the  Chinese  Railway  Co.,  under  whose  direct  orders  he  shall  be.  This  controlling 
engineer  will  be  under  the  absolute  direction  of  the  general  director  of  the  Chinese 
Railway  Co.  The  Chinese  Railway  Co.  reserves  all  rights  of  management  of  the 
railway.  It  will  be  responsible  until  the  expiring  of  the  present  contract  for  the 
salary  of  this  controlling  engineer  as  fixed  upon  in  agreement  with  the  Society  Finan- 
ci5re  et  Industrielle  Beige  en  Chine. 

Art.  9.  The  foreign  staff  needed  by  the  Chinese  Railway  Co.  for  building  and  oper- 
ating the  line  during  the  life  of  the  present  contract  shall  be  chosen  and  presented  by 
the  technical  controlling  engineer  representing  the  Society  et  Financi^re  Industrielle 

28a 


lAILWAY  MATEBIALS,.  EQUIPMENT,  AH'D  SUPPLIES. 


APPENDIXES. 


285 


Beige  en  ChiBe;  it  will  be  appointed  by  decision  of  the  director  general  of  tbe  Chinese 

Railway  CO'.    The  CMnene  Railway  C<j.  is  at  liberty  to  settle  for  itaelf,  as  regards  ita 

■-foreign  staff,  the  form,  of  eigagCMent  to  be  used,,  adopting  long  or  short  term  contracts. 

All  the  staff  employed  by  the  Chinese  Railn'ay  Co.  and  attached  to  the  working  of 
the  line  with  the  exception  of  the  controlling  engineer  will  be  required  to  obey  the 
Chines©  delegates  of  the  director  general  of  the  c<im:iMny  and  work  Mfmonioiisly  with 
all  the  Chinese  and  foreign  staff  of  other  nationalitiee,  chosen  and  appointed  by  the 
director  general  to  any  .position,  and  this  in  the  interest  of  the  railway  company. 

If  disputes  arise  between  European  and  Chinese^  agents,  they  ehafl  he  impartially 
iettled  by  the  director  general,  aided  by  the  representative  of  the  Belgian  company. 

The  director  general  of  Chinese'  failwavs  shall  always  be  at  liberty  to  designate 
foreigners  of  whatever  nationality  to  inspect  the  works  under  way;  the  Belgian  com- 
pany shall  never  have  the  right  to  prevent  it. 

NevertheleM,  the  duty  of  the  persons  so  deaigiWited,  Aall  only  consist  in  inspecting 
works  and  they  shall  never  have  the  right  to^  give  orders  to  the  staff  employed  in 
building  and  working'  the  line.  Such  pewons  may  likewise  make  reports  to  the 
director  general  of  Chinese  railways  on  the  results  of  their  inspections. 

The  staff'  employed  in  bmlding  and  operating  shall  furnish  all  necessary  facilities 
to  foreigners  entrusted  with  an  mspection,  anS  that  in  the  interest  of  t&e  Chinese 
.Railway  Co, 

Aet.  10.  In  case  one  of  the  foreign  employees  referred  to  in  articles  8  and  9,  ine- 
apective  of  duties,  should  through  careleisnesB^.  incapacity,  disobedience  of  the  orders 
of  the  director  general,  insubordination,  drunkenness,  or  bad  conduct,  be  held  to  be 
'inlit  for  the  service,  the  director  general  shall  have  the  right  to  cancel  the  contract 
and  the  dismissed  agent  shall  leave  at  once  the  ser^dce  of  the  Chinese  Railway  Co. 

,Aii.r.  11.  The  materials  necessary  for  tfie  Chinese  Railway  Co.,  exclusive  of  all  that 
can  bn  manufactiu^d  in  China  or  of  that  that  can  be  manufactured  there  lator  on,  shall 
lie  boiifflit  iubnad.. 

The  director  general  shall  decide,  in  consultation  with  the  controlling  engineer,  the 
amount  of  materials  to  ask  bids  on;  said  quantity,  however,  shall  never  ex^  50  per 
cent  of  'that  reqwred. 

The  award,,  shall  be  made  without  any  special  favor  for  the  Soci^t^  Knanci^re  et 
Ind'ustrielle  Beige  en  Chine.  If  this  company  agrees  to  furnish  at  .perfect  equality 
©f  conditions  as  to  ouality,  price,  and  carriage  with  those  secured  by  the  CThinese 
Railway  Co.,  the  Belgian  company  shall  have  the  furnishing  of  said  materials;  but  if 
said:  com,panv  is  iiiiiih,le  to  supply  under  the  above-mentioned  conditions,  the  Chinese 
Railway' Co.' will  mate'  ite  purdkse'  where  it  Miss;  the  Belgi,an  company  shaU  in  no 
way  prevent  it  so  doing. 

As  to  the  materials  which  can  not  be  divided  in  accordance  with  paragraph  2  of  the 
present  article  (50  per  cent  maximum  asked  for),  if  the  Belgian  company  agrees  to 
furnish,  at  'perfect  equality  of  conditions  as  to  quality,  price,  and  carriage  with  those 
secured  by  the  Chinese  Railway  Co.,  the  furnishing  shall  be  .granted  the  Belgian  com- 

Einy;  in  the  contrary  case,  the  Chinese  Railway  Co,  will  buy  where  it  chooses;  the 
elpui  ^  'Com,pany  shall  in  no  'way  prevent  it  sO'doi,ng. 

Tne  Chinese  ,Iiail'way'  Co.  reserves  to  itself  the  right  to  use  al,I  m^eans  it  may  deem 
good  to  inform  itself  as  to  the  best  prices  for  supplying  all  its  matorials  without  the 
Belgian  com:pany  interfering  in  any  way  with  its' inquiries. 

Aet.  12.  As  a  premium,  the  Chinese  Rail,wiiy  Co.  will  pay  the  Belgian  company  ,a 
sum  of  5  per  cent  on  the  net  value,  less  the  cost  of  transportation,  insurance,  etc.,  on 
all  matonals  bonght  abroad.  The  materials  for  the  brancn  from  Lukowkiao  to  Paoting 
is  not  subject  to  the  premium  provided  for  in  the  present  article  because  nearly  the 
'whole  amount  of  said  material  ,haS'  already  been  bought. 

,A'RT.  13.  The  taking  over  of  ma,terial  bought  in  Belgium  will  be  in  the  factories 
making  it  and  by  a  commission  consisting  of  a  delegate  of  the  Chinese  Railwav  Co.  and 
of  a  delegate  of  the  ,Soc,i6t^  Financi^re  et  Industrielle  Beige  en  Chine;  in  case  of 
diiif  reement,,  these'  two  delegato  shall  choose  an  umpire  to  decide  the  question.  The 
•eac'penses:  'Of  the  delegates  .shall  he  borne  by  the  com'pany  designating  them.  The  ei- 
pensee  of  'the  umpire  shall  be  borne  by  the  losing  puty. 

,A.KT.  14.  The  Soci'6t6  ,Fin,anci^re  et  Industrielle  Beige  en  Chine  and  its  chosen  agent 
shall  deal  with  no  other  persons  or  accept  any  other  auiaority  than  the  Chinese  Railway 
Co.  The  latter,  on  its.  side,  .shall  only  recognize  the  8oci6te  Financifere  et  Indu8tri,ell© 
Beige  en  Chine,  es'tablished,  at  Brussels,  in  1897,  to  the  exclusion  of  every  O'ther  com- 
pa,nv. 

During  the  life  of  the  present  contract  the  Belgian  company  shall  in  nowise  be 
managecl  by  manufacturers  or  subjects  of  other  countries,  and  tne  Belgian  company 
■hall  not  be  at  liberty  to  transfer  thia  contract  to  any  other  country,  nor  to  the  iubjecto 
of  ^another  co^untry. 


Art.  15.  If  the  provisions  set  forth  in  the  present  convention  are  regularly  adhered 
to  by  the  Chinese  Railway  Co.,  the  Soci^t4  I^inanci^re  et  Industrielle  Beige  en  Chine 
a|(fe«,  in  case  of  necessityj,  to  study  means,  in  conjunction  with  the  said  company,  to 
secure  to  it  special  facilities  for  extending  the  terms  of  paying  of  the  annuities  and 
interest. 

In  case  extensions  are  granted,  the  amounts  which  should  have  been  refunded  shall 
bear  the  same  interest  as  that  pro\dded  for  the  loan  in  the  present  convention. 

If  the  Chinese  Railway  Co.  wishes  to  refimd  the  whole  loan  before  the  date  on  which 
it  falls  due,  it  will  be  at  liberty  to  do  so  and  the  interest  will  c^ase  from  the  day  of  such 
refunding,  and  the  contract  shall  be  declared  void  from  that  day. 

Art.  16.  All  the  above  provisions  are  agreed  upon  in  the  provisional  contract  made 
this  day;  this  provisional  convention  is  signed  by  tbe  director  general  of  the  Chinese 
Railway  Co.  on  the  one  part,  and  stamped  with  his  seal,  and,  on  the  other  part,  by  the 
two  representatives  of  the  Soci^t^  Fmanciere  et  Industrielle  Beige  en  Chine,  and 
visaed  for  authentication  by  the  consul  of  Belgium  at  Hankow. 

Within  two  months  from  the  date  of  signing  of  the  provisional  contract,  the  Chinese 
Railway  Co.  and  the  Soci^t^  Financi^re  et  Industrielle  Beige  en  Chine  will  sign  again 
so  as  to  confirm  the  pro\'isional  contract  which  shall  then  become  final. 

These  formalities  complied  with,  the  contract  shall  receive  the  seals  of  Their  Excel- 
lencies the  Viceroys  of  Pechihli  and  of  Hukuang,  and  also  that  of  His  Excellency  the 
Minister  of  Belgium,  at  Peking. 

Art.  17.  The  present  contract  has  been  drawn  up  in  the  French  and  Chinese  lan- 
guage*; when  necessity  arises  for  consulting  the  contract,  the  two  texts,  absolutely 
identical,  shall  both  be  authoritative. 

Done  at  Wuchang,  May  27,  1897. 

The  Chinese  Railway  Co.  being  represented  by  His  Excellency  Sheng-Hsuan-Hual, 
its  director  general. 

The  Soci6t^  Financi^re  et  Industrielle  Beige  en  Chine  being  represented  by 
MM.  Masy  and  Eizzardi. 

ADDITIONAL  PROTOCOL  TO  THE  CONTRACT  RELATING  TO  THE   LOAN 
FOR  £4,500,000  FOR  THE  RAILWAY  FROM  L17KOWKIAO  TO  HANKOW. 

A  provisional  contract  was  made  at  Wuchang  May  27,  1897  (twenty-sixth  day, 
fourth  month,  twenty-third  year  of  the  present  reign),  relating  to  the  loan  for  the 
railway  from  Lukowkiao  to  Hankow,  between  the  General  Go.  of  Chinese  Railways, 
established  by  imperial  decree  of  October  20,  1896  (fourteenth  day,  ninth  month, 
twenty-second  year  of  the  present  reign),  to  which  was  granted,  by  the  same  decree. 
the  concession  for  the  said  line,  of  the  first  part,  and  the  Belgian  company,  established 
by  authentic  act  dated  March  3,  1897,  published  in  the  Moniteur  Beige  (oflficial  news- 
paper) of  Mferch  22  and  23,  1897,  of  the  second  part. 

This  contract  was  authorized  by  imperial  decree  of  May  25, 1897  (twenty-fourth  day, 
fourth  month,  twenty-third  year  of  the  present  reign).  The  decree  of  that  date  will 
be  communicated  to  His  Excellency  the  Minister  of  Belgium  at  Peking  through  the 
Tsung  Li  Yam^n. 

The  Chinese  Railway  Co.,  represented  by  His  Excellency  Sheng,  its  director  gen- 
eral, duly  authorized  for  that  purpose  by  the  above-mentioned  decree,  and  the  Belgian 
company,  represented  by  M.  Alexis  Dufourny,  chief  engineer,  director  of  the  Ponts  et 
Chauss<5e8  at  Brussels,  and  by  M.  Edouard  Walin,  first-class  engineer  of  the  Ponts  et 
Chauss^es,  director  of  the  intercommunal  waterworks  company  at  Brussels,  duly 
authorized,  on  their  side,  by  the  Belgian  company,  authority  confirmed  by  a  tel^ram 
of  His  Excellency  the  Belgian  Minister  at  Peking,  sign  anew,  in  the  name  of  the  inter- 
ested parties,  the  provisional  contract  according  to  the  terms  of  article  16  of  the  latter, 
so  as  to  confirm  it  and  make  it  final,  and  agree  furthermore  on  the  following: 

Article  I.  The  above-mentioned  Belgian  company  will  make  a  complete  study  of 
the  line  from  Hankow  to  Lukowkiao  for  the  Chinese  Railway  Co. ;  it  undertakee  to 
make  the  surveys,  leveling,  longitudinal  and  sectional  cuts,  to  make  all  plans,  drafts 
of  masonry  works,  bridges,  buildings,  shops,  stations,  and  outhouses  of  whatever 
nature,  as  also  the  measurements  and  specifications,  all  charges  for  which  are  included 
in  the  forty-hundredths  per  cent  of  additional  interest  mentioned  hereafter  in  article 
III. 

A  similar  study  will  be  made  for  the  rolling  and  fixed  stock.  But  in  conformity  with 
article  8  of  the  contract,  the  drafts  and  plans  shall  be  successively  submitted  to  the 
approval  of  the  general  director.  It  is  well  understood  that  all  these  works  are  to  be 
carefully  done,  mthout  any  omission;  they  are  not  to  occasion  any  additional  expenses. 

Field  work  for  the  carrymg  out  of  the  works  must  be  finished  within  a  year  from  the 
date  of  the  conclusion  of  the  last  formalities  of  approval  of  the  contract.    Tiiey  must 


rl 


286 


'RAHiWAY  MATIBIAMI,  EQIT'IFMEWT,  AWB  SUPPLIES. 


be  cmtriei  mtt  witli  tli:e"ii«c«ieiti7  ftctlvity  to  <|Miiiiit-of  Urn  amtenkilMiit  work  being 
beffiir..  nitiiiii  six  'i]iaii:te  of  tlu  Above-raestifiiiiMl  ^te. 


A*.a...  11.  The  Belirwn.  «m|Miny  etirreedere  its  riglit  to  a  premium  on  materiab,  coa- 
ferrtfl  on  it  by  article  12  of  tie  contract,  and  thotiioie'  aaid  ariicl©  ie  eonaiifltecl  void. 

.A  «T.  HI.  On  the  other  hand,  a§  com,:|)e:naation  for  the  concessions  mentioned  atovo 
in  articles  I  .and  II,  and  tK)'giwniii:t6i>'ito«X'p49iieee  of  orfipaniisation,  miaaion  abroad,  and 
'imning  (the  loan),  inclueiv©  of  all  diflbur8em«nt8  whataoe¥er  relating  thereto,  and 
finally  ita  general  ex|>eMteB  daring  the  whole  time  of  the  loan,  the  Be%ian  company 
almll  receive  an  increa^s^,  of  iorty-huiidredtki  .per  oailifcwr  pm  (houiaiid)  on  the  rate  of 
interest  |>rovide<i  for  in  :article  il  of  the  contiact,  Thia  tiiditioiiAl  iB'teresi  of  4  per 
tboueana  will  te  :paad  in.  the  name  manner  .as  tlie  yearly  iiit«Mst  txt  4  per  cent;  couse- 
quently  the  rate^  of  in,ter<:«t  of  4  per  cent,  together  with  all  the  .general  ©xponece,  is 
.mieed,  in  effi?ct,,  to^  4  itnii  40 ..per  'Cent  (4.40  'per  cent).  No  chaiige  whatsoever  in  exccw 
of  thu  nte  oi"  interest  ahall  m  amkei.  for. 

Art.  IV.  The  myments  provideil  for  in  article  2  of  the  contract  shall  be  made  into 
^the  Btlpan.  B«i!k  at  BniSKls,  iiMipiated  by  the  .name  of  "Soci^t^^  G6n6rale  pour 
Favoiiaer  Flidtiatrie  Nrntionalfl,'*  :aiiM|.  'i]i«  cauaiaw  Bsiiway  'Go.  will  transfer  (thereto) 


sums,  paid  into  the  C^iiiiiiiiircial  'Bank  of  'CHiiaa  at  SliaiiiKiiai,  oipminMl  by  impenal 

decree  nader  date  of  Novaniber  12, 18%  (eighth,  day.  tenth  month,  twenty^necinia  year 
of  the  present  reign ) .    The  piiyiBenta  of  i nterest  and  annuitiee  will  be  made  in  pounds 

sterling  into  the  above-mentioned  Commercial  Bank. 
A  KT,  ¥..  1 1  il'  iBdem^lood.  :th«i  'the  .giiaiaiity  ai  'lli«  .tailwmy  line,  ivferred  to  in  article 

S  of  the  con.tiikiCt|  hii'  ahsoluMy  priority  of  'rank. 

A'C't'T.  VI.  Thejpreseot  protocol  shall  be  8tani,ped  with  the'seal  of  Their  Excellenciw 
the  Viceroys  of  Pechihli  and  of  H.ukiiang,  and  also  'with  that  of  His  Excdleney  the 

.H.:iDiiBUir  01  oeig^Hini  -aii'  jr^eKiii^. 

The  present  protocol  "has  been  made  oiit  in  four  copies  .io  the  French  mud.  '€hini 
.IsMpips.;  'hotA  vemiona  mm  'e4|.ually  authori.tative. 

Done  at  Shan|?h.ai,  Jnly  21,  18'97.. 

.For  the  Chinese  Bailway  'Co, 

The  'Bmdm  €kmmtl, 

SH'Sita. 
.For  the  Belgian.  Company, 

fl<,Jbi'l  elitt  Bnfmtff  ofPmitM  et  €%tmmk9, 
"■ "     "  r  <!f  lie  l»i«n»iiiiit:ww,.I  WtUFwoirks  Ob., 

WW  A.'l4i  N  il 

BUPOUENT. 


"He  Clwf  irit.ft««r,  Dtrwlor'  ofPfmis  ei  C^mmiti, 


.Between  the^  tindienigned : 

1.  The:ir  Excellencies,  the  V.ic«iiiifi  'Of  CI 

Ewmm  ham  .the  inipeiiml  Chinese'  Gover 
ijeety  the  B^aipjor 
tion.  .hiia''beeo  officially  miMle  to  the  repreeentati.ve»  <»l  .Belgium  at  Peking,  by  dispatch 
:0l' the  ■Timing  Li  YmuM.,  under  date  of :  »»./!- 


i  and  of  Hupeh,  acting  in  wtue  of  full 
serial  Chinese'  Government,  d'uly  attthori.zed  by  decree  of  His 
of  China,  under  date  of  October  20,  1896,  of  which  commu.mea- 


.Ite  director  .geBoeal ; 

.And  the  'Soci^t^  d*£tude  de  C^ie'inins  de  let  ea  Chine.,  repesentod  by  M .  Eugene 
II.ubert,  engineer, 

.Has  bee.n  .agned  the  following: 

i.«Tic.LE  1.  The  .Im,perial.  Climesi'  Govemmeiit  .^has,  'in  com.pMaEce  with  a  decree 
'^MM  'October  20,  1896.  of  which  copy  w  anntiMi.  to  thepreieiit  contract,  granted 
.tlw  conceisittn  of  the  line  from  Lukowkiao  (Fekin.g)  to  .fiSukmr  (about  1,300  kilo- 
:«ieton)  to  tlM  'ChiBfiie:  .fiativay  Co.,  'which  haa^  .aiieiB.  .ttnfuiiiting  to  13,000,000  taels. 

An  ed..ict  of  His.  UajestT  Ihe  .Emjpaiw  ni  'duiift'  hm  authorind  Tlwir  Excellenciee 
the'  Viceroys  of  Chihli  .ana  'Of  Hupi.  ni  ^Mi^:  .Sxceieiicy  Sheiig':BiBllaii-huai,  director 
wneral  of  Cl.iio,c8e  'railways,  to  contract,  in  the  name* and  on  account  of  the  Imperial 
Chiiwse  ■Go¥ernment,  a  loan  the  product  'of  which  m  destined,  exclusively  'to  the  build- 
ingof  the'  ..abo'v«-.meB.tioMd.  .line. 

ThiS'  edict,  tieftriiig  'date  of  Ck^tobci"  .SO,  ISifi,  and  of  'whicli  a  copy  ia  «iiiie.zed  to  the 
,pre8ea.t  contract,  is  worded,  as  follows: 

■".Edict  of  His  .Ma|'est.y  t.l:ie  Emiieror  <*f  Chii»': 

"In .mponse  to^ .a.i»auest  of  Their  boeieiicies  tlie  Viceroys  of  Chihli  md  of  H«- 
■*''•  'presc'nted  'to  Hia  Maje8.ty  the  Bmiwror'  of  China,  an  imperial  edict,  bearing 


APPENDIXES* 


«o7 


date  of  this  day,  autlraices  the  'Oipmixinj^  'Of  a  railway  company  and  .grants  it  the  con* 
cession  of  the  line  from  Lukowkiao  (Peking)  to  Hankow.  His  Majesty  the  Emperor 
aiithorkes  the  railway  company  to  contract  abroad  a  loan,  the  product  of  which  shall 
be  devoted  in  full  to  the  buiMuig  of  aaid  line. 

''His  Excellency  Sheng  Sallan-huai,  undersecre'tary  .of  State,  is  appointed  director 
gem^ral  of  this  new  company. 

"  Peking,  October  20,  1896." 

In  compliance  with  the  terms  of  this  edict,  the  Imperial  Chinese  Government, 
represented  by  Their  Excellencies  the  Viceroys  of  Chihli  and  of  Hupeh  and  the 
Director  General  of  Chinese  Railways,  has  decided  to  contract  a  State  5  per  cent 
foreign  gold  loan,  of  a  nominal  value  of  112,500,000  francs  (or  4,500 ,0(X)  pounds  sterling). 

This  loan  shall  be  known  as  the  Chinese  5  per  cent  1898  I^oan. 

Amt.  2.  This  loan  will  be  represented  by  225,000  Ixinds  of  500  francs  gold. 

Theee  bonds,  the  text  of  which  is  annexed  to  the  present  contract,  shall  he  signed 
in  thi»  name  of  the  Imperial  Chinese  Government  by  the  Viceroys  of  Chihli  and  of 
Hiifieli  and  by  the  director  general  of  the  Chinese  Railway  Co. 

They  shall  be  issucxi  in  blocks  of  one  to  five  bonds,  in  the  |»oportion  to  be  indicated 
by  the  Soci^t6  d' Etude  de  Chendiis  de  fer  en  Chine  and  a«  to  be  manufactured  at  its 
expense . 

They  Aail  bear  5  per  cent  interest  annually  on  the  par  value  payable  in  gold. 

intereat  ahall  accrue  from  the  date  of  the  payments  and  Ihall  be  payable  September 
I  :at>d  March  1.  of  each  year. 

Tlie  first  coupon  is  payable  in  gold  at francs. 

Art.  3.  The  loan  shall  be  extinguished  in  20  years,  from  the  year  1909,  by  yearly 
dimwings  by  lot  (tiimgee  cti  aort),  wweh  will  take  place  at  Brussels,  in  the  offices  of  the 
Soci^t^  G^irorale  pour  Favwiaer  1' Industrie  Nationale,  in  conformity  with  the  table 
annexed  to  the  present. 

The  dmaliiifB  shall  take  place  the  second  Tuesday  of  January  each  j'ear;  th«  irat 
dimwiiig  ahull  take  place  on  that  date  in  1909. 

The  numbers  of  the  lyonds  drawn  shall  be  published  in  fornr  newapapeis  at  the 
expense  of  the  Societe  d' Etude  des  Chemins  de  fer  en  Chine. 

\wt.  4.  The  bonds  dmwn  shall  be  refunded  in  gold  at  their  par  value  on  the  data 
on  which  falls  due  tlie  next  coupon. 

The  bonds  presented  for  reimbursement  must  haiw  attached  to  them  all  tlie  coupons 
remaining  unpaid,  and  the  amount  of  missing  coupons  will  be  deducted  from  the 
lanitel  to  be  refunded. 

Interest  on  bonds  ceases  to  accrue  from  the  date  set  for  reimbursement. 

Ajv.  5.  The  Imperial  Chinese  Goyemment  den^  itself  the  right  before  Septom> 
her  1,  1907,  to  increase  the  amortization,  to  pay  off  the  whole  loan,  or  to  makse  a  con- 
fvcmon  of  it.*  After  that  dat»  it  shall  be  at  liberty  to  pay  off  the  loan  at  any  time 
Wore  tlie  terans  of  payment,  and  once  the  refunding  made,  the  contract  slkll  be 
declared  annulltd. 

Ak*.  6.  The  coupons  and  the  bonds  ("tttrea")  redeemed  ("amortis*')  shall  be 
payable  in  francs,  in  Europe  in  the  office  or  offices  deaigiiated  by  the  Socieie  d'Eliido 
and  entrasled  by  it  with  the  management  of  the  loan. 

Akt.  7.  Payment  of  interest  and  refunding  of  bonds  of  the  present  loan  are  guar> 
anteed  by  the  gross  revenues  of  the  Imperial  Chinese  Government. 

Furthermore,  in  virtue  of  an  authorization  already  granted  by  the  Chinese  Gov- 
ernment, and  in  agreement  with  it,  the  Chinese  Railway  Co.  declares  that  it  specially 
aangns,  preferentially  for  the  payment  of  interest  and  capital  of  the  present  loan, 
and  consequently  cedes  and  delegates  in  favor  of  said  bonds  all  the  net  revenue  of 
the  line  from  Lukowkiao  (Peking)  to  Hankow,  after  the  regular  payment  of  all 
ex|x»n8es  of  administration  and  operation,  tlie  whole,  as  is  furthermore  set  forth  in  a 
treaty  for  operating  (the  liae)  concluded  between  th^  Chinese  Railway  Co.  and  the 
Society  d'Etude  de  Chemins  de  fer  en  Chine,  treaty  hereto  annexed  and  forming  an 
intcojal  part  of  this  contract. 

This  assignment  (*' affectation")  is  made  exclusively  and  irrevocably  until  complete 
refunding  of  the  bonds  of  the  present  loan. 

Aet.  8.  The  Chinese  Railwav  Co.  directs  the  Soci^t<5  d'Etude  to  deposit  the  funds 
frcffli  the  net  revenue  of  the  traflic  with  the  Soci^Ste  Gencrale  i>our  Favoriser  1" Industrie 
Nationale,  established  at  Brussels,  or  with  the  company  designated  by  it. 

This  latter  shall  convert  into  gold,  and  to  the  best  intaiest  of  the  Imperial  Cliinese 
Croveniment  and  the  Chinese  Railway  Cb.,  and  up  to  the  full  amount  of  the  sum 


1 9ee.,  lio«r«'%'.(r,  Imn 
'Oovcramoiiit  took 


ml  or  Oct.  8, 190S,  and  imp«fia1  edicts  of  Ofjt.  S  awi  8,  IW».    Tlie  (Mama 
nftlit  Pekiiig-iiarakowr  Eatlway  Iram  Jsa.  1«  llil. 


n 


f> 


lAILWAY  MATERliiLS,  EQ,ITIPMB¥T,  AMD  SUPPLIES. 

nec?e«»:ry  to  insure  !!i,e  sendee  of  the  lopn  at  the  following  semian final  |»yM,ent,  tlio 
'iepoiite  made  'with,  it  by  the  SocWt^  d 'Etude  empowered  by  the  Chinefle  Railway  Co. 

#A  'WiAlrA  'f'li.Atin 

Th^cie'  depodlB  by  the  Socift^^  d*6tiide  'with  Hie  Soci^t^  G^?n«^mle  Belf©'  or  the 
rom'pany^  dcaignated  by  it  shall  TOntinue  to  be^  made  until  the  sum  neceestry  for  the 
full  iemce  of  the  lotii  at.  the  date  "of  th.e  next  semiannual  piiymeiit  has  been  com- 

leted  in  gold,  and  in  such  m.an,ner  that  said  semce  i«im!«„red  three  months  at  least 
Defore  said  semiiinniial  payment  falls  due.  The  depjodlories.  shall  utilize  them 
sums  in  the  manner  the  most  advantageous  for  the  Chinese  company. 

The  account  on  which  thme  fiums  are  home  ishall  be  chaiired  20  days,  before  date 
of  semiannual  pajTiient  with  the  sum  necesaary  for  the  senrioe  of  the  loan,  interest, 
amortization,  expenses,  and  commissions. 

Art.  9.  The  bank  having'  received  in  deposit  the  funds  shall  have  the  right  to 
take,  without  new  aiithorifation,  from  such  funds  on  depoeit,  the  amount  of  the 
couiwns  to  be  paid  during  the  i»riod  of  ■constniction. 

Art.  10'.  'So  as  to  insure  the  gnanmty  fuit  menttoO'ed  for  the  bonds  of  the  present 
contract,  the  Chinese  Railway  Go.  recognizes  for  these  bonds  a  prior  special  lien  on 
the  railway  from  LukowUiio  (Peking)  to  Hankow:  line,  stationary  and  rolling  stock, 
and  receipts, 

Thi»  special  assi^gnment  is  accepted  in  the  name  of  the  bondholdeni  by  the  Soci^t4 
d*B tilde.  In  case  of  nonlxeciition  of  the  obligations  assumed,  by  the  Chinese  Rail- 
way Cto.  in  the 'present  contract,  the  Socit'te  d'fetude  or  the  Belgian  company  deaig- 
Bated:  by  it,  .8h,all  have  full  po'W»r  to^  enjoy  as  to  wid  property  all  the  rights  and"  powers 
insulting  from  said  special  aa8igii.ment. 

.Aw,  ll.  'The  preceding  pre^iiions  do  not  relieve  the  Imperial  Chineae  Govern- 
ment from  ijerso'nal  re-iponsibility  relative  'to  the  present  loan,  aa  this  re!?po'nsibility 
'is  specified  in  a.rt..icle  7, 

■Conseauently.,  the  I.'m,peri.al  Chinese  Government  amm  to  make  up  the  necessary 
amount  for  the  .service,  m  .gold,  of  the  loan,  in  cane'  tne  suina  .accruing  from  the  net 
proceeds  of  the  line  from  I,.ukowkiao  (Peking)  to  Hankow,  and  paid  by  the  Soci^td 
4'ttMde,  entrusted  with,  thk  »er\'ice"by  the  Chinese  Railwmy  Co.,  to  the  Soci6t4 
GftiAmle  Beige,  or  to^  the  com,pa.ny  which  it  may  designate,  should  not  have  reached, 
alter  their  conversion  in  gold,  and  .at  least  three'  months  before  the  following  semi- 
.B&niiai  payment,  the  .am:Ount  Buffl.cient  to  cover  isaid  service. 

In  this  case,  and  U'pon  the  reques't  'iwuie  it,  the  Imperial  Chinwe  Government 
must  hold  at  the  disnoaal  of  the  Soci€t#  'G^U'^rale  Beige  or  of  the  compwiy  desigBAted 
by  it  60  days  before  the  next  semiannual  payment,  :gold  or  ■secuo.ties  ^^mmi  enffident 
to  .foaliBe  the  amount  .in  .gold,  irhich  the  company  shall  have  uotiiai.  iSkm  Gmmm- 
..men.!  :is  necessary  to  complete'  tJie  myment, 

.Ait:.  12.  Out  of  the  sums^  coming  from  the  payments  made  by  the-fied^  d'fltadt 
or  the  pa.yment8  made  by  the  Im.pe.rial  Chinese'  Government,  'the  Soci^t^  G^^ittle 
Beige  or  the  company  designa.tecl  by  it,  shall  in  due  time  place  at  the  disposal  of 
the  irma  entrusted  with  the  service  of  the  loan,  the  necessky  amounts,  according 
tO'  the  .needs,  as  .asce^rtained  du.rin^_  the  preceding  .hmlf  year. 

Amt,  13.  'The  Im,perial  CMneae  Government  will  pay  to^  the  firma  entrusted  with 
the  »rvi«  of  the  loan,  a  commiasion  of  J  per  cent  on  the  amount  of  paid  coupons 
and  a  oomminion  of  f  per  cent  on  the  amount  of  the  bonds  drawn  or  ^dmned  by 
anticipated,  .reimbunement.  'The  .amount  of  'this  allowance  ahali  be  deducted  every 
six.  months  from,  the  surplus  of  the  available  exploitation  receipts,  a.nd,  in  case  of 
inautficiency,  it  .shall  be  i.m,mediately  paid  by  the  Imperial  Chinese  Government. 

.AiT.  14.  The  Imperial  Chinese'  Government  binds  i'tself  by  the  present  conven- 
tions to  O'bsenre  and  cause  to  be  observed  the  privilege  stipulated  in  favor  of  the 
bonds  in  article  9,  .and  to  maintain,  free  and  exem.pt  from  all  tax  whatsoever,  the 
bonds  and  'Coupons,  as  well  assail  transactio'na  of  whatsoever  nature  connected  with  the 
service  of  the  loan. 

A'RT.  15.  Coupons  whi'ch  shall  not  have  been  presented  fqr^  cashing  within  five 
years  following  their  falling  due,  shall  revert  to  the  Imperial  Chinese  Govemm'ent; 
30  years  ehall  be  the  li.mit  for  redeemed  bonds. 

On  the  dea.th  of  anj  bondholder  of  the  present  loan,  the  bonds  shall  be  transferred 
.and  ahatl  belong  to  hia  heirs,  according  to  the  inheritance  laws  in  force,  in  the  couu'try 
of  whiij:i  the  d^eceased  tonclholder  was  citiaen. 

Paym.ent«  of  'Coupons  'and  the  redemption  of  bonds  shall  be  m,ade  in  time  of  war., 
as  in  time  of  peace,  to  the  bearers  whether  they  be  subjects  of  friendly  or  hiMiil* 
States.. 

In  case  of  loss,  of  „  theft,  or  de8tructi.on  of  bonds  'Of  'the  present  loan,  the  Chimese 
Government  shall  replace  them,  after  having  been  furnished  satisfactory  proof  of 
their  loss  or  of  the  destruction  of  the  title  deeds  and  of  the  rights  of  the  claimants. 


APPEN'DI'XBS. 


289 


Art.  16.  The  Imperial  Chinese  Government  through  its  representatives  in  Europe 
ehall  immediately  take  the  necessary  steps  and  furnish  the  necessary  documents 
for  the  official  listing  of  the  present  loan  in  the  bourses  of  Brussels  and  Paris. 

Art.  17.  Out  of  the  total  amount  of  the  preset  loan,  representing  as  nominal 
capital  a  sum  of  112,500,000  francs,  the  Soci^t^  d'Etude  de  Chemins  de  fer  en  Chine 
purchases  outright  ("acheteferme")  39,000,000  francs  of  nominal  capital,  or  78,000 
bonds  of  600  francs,  at  90  per  cent  for  the  total  sum  of  35,100,000  francs,  delivery 
to  date  from  the  pa^^nent,to  the  banks  designated  in  the  following  article: 

Art.  18.  The  iSoci'^t^  d'Etude  de  Chemins  de  fer  en  Chine  shall  deposit  the  amount 
of  this  purchase,  as  follows:  8,600,000  francs  in  the  Russo-Chinese  Bank  at  Shanghai, 
and  the  remainder  in  a  bank  designated  hy  common  accord  by  the  director  general 
of  the  Chinese  Railway  Co.  and  the  Soci6f^  d'Etude  and  against  receipt  by  the 
Russo-Chinese  Bank  in  Paris  of  definite  bonds  for  78,000  bonds  bought  outright 
C'achet^s  ferme")  and  deposit  in  the  same  bank  of  the  definitive  bonds  for  147,000 
bonds  forming  the  surplus  of  the  loan. 

The  Russo-Chinese  Bank  and  the  bank  designated  by  common  accord  by  the 
Chinese  Railway  Co.  and  the  Soci^t^  d'Etude  ehall  credit  the  Chinese  Railway 
Co.  with  the  sums  deposited  with  them,  it  being  understood  that  these  depository 
establishments  shall  not  be  obliged  to  deliver  these  sums,  except  under  the  con- 
ditions and  under  the  reservations  indicated  in  undermentioned  article  20. 

The  depository  banks  shall  use  these  sums  to  the  best  advantage  of  the  Chinese 
Railway  Co. 

Art.  19.  The  Chinese  Railway  Co.  declares  that  it  has  resourced  amounting  to 
13,000,000  taels. 

The  construction  of  the  railroad  from  Lukowkiao  (Peking)  to  Hankow  being  limited 
provisionally  to  the  section  from  Lukowkiao  (Peking)  to  Paoting  (145  kilometers)  and 
to  the  Hankow-Sinyang  section  (247  kilometers)  which  must  be  constructed  first; 
it  is  understood  that  the  13,000,000  taels  above  mentioned  shall  in  the  first  plare  be 
applied  to  the  construction  and  to  putting  in  complete  working  order  of  the  Lukow- 
kiao-Paoting  section. 

The  construction  of  the  entire  line  (not  including  the  Peking-Paoting  section)  shall 
be  done  under  the  direction  of  the  Soci^t6  d'Etude  de  Chemins  de  Fer  en  Chine  or  its 
representatives,  but  for  the  account  of  the  Chinese  Railway  Co. 

The  Soci^t^  d'Etude  shall  make  the  studies,  plans,  8urv^e>^,  estimates  for  the  whole 
line,  direct  the  execution  of  all  the  work  and  order  the  materials.  machiner>%  and  fur- 
niture necessary  to  insure  the  regular  operation  of  the  line.  However,  the  director 
general  of  the  Chinese  Railway  Co.  reserves  to  himself  the  right  to  approA^e  the  building 
plans  and  contracts  for  supplies. 

Except  for  supplies  of  materials  and  expenses  of  all  kinds  paid  in  Europe,  the 
Chinese  Railway  Co.  must  place  at  the  disposal  of  the  Soci6t6  dTEtude  the  necessary 
sums  for  settling  all  payments  without  exception  necessitated  in  the  canning  out  of 
the  work,  as  well  as  the  payment  of  the  staff  under  the  orders  of  the  Society  d'Etude 
and,  in  general,  all  expenses  whatsoever. 

Consequently,  the  Soci^t6  (d'Etude)  shall  not  be  obliged  to  pay  any  expenses  from 
its  own  funds. 

It  shall  endeavor  to  complete  the  constmction  of  the  line  within  three  years. 

Art.  20.  On  the  Hankow-Sinvang  section  and  eventually  on  the  other  sections 
between  Paoting  and  Sinyang,  tne  Russo-Chinese  Bank  in  tiie  first  place  and  after- 
wards the  bank  designated  by  common  accord  by  the  Chinese  Railway  Co.  and  the 
Soci^t^  d'Etude,  shall  deposit  each  month  with  the  Chinese  Railway  Co.,  out  of  the 
available  funds  in  their  hands,  the  amounts  necessary  to  settle  the  payments  for  the 
ensuing  month,  according  to  the  estimates  prepared  by  the  Societe  d'Etude  or  its 
delegates. 

A  first  transfer  equivalent  to  the  estimated  value  of  the  work  already  executed  on 
the  Hankow-Sinyang  section  shall  be  made  as  a  first  credit. 

The  price  paid  for  the  above-mentioned  bonds  being  exclusively  affected  to  the 
construction  of  the  line  from  Hankow  to  Paoting,  the  Russo-Chinese  Bank  and  the 
bank  referred  to  in  the  first  paragraph  of  the  present  article,  would  have  the  right  not 
to  i>ay  the  funds  in  case  one  of  their  payments  were  diverted  from  the  purpose  stipu- 
lated* as  well  as  in  ease  the  representatives  of  the  Soci^t^  d'Etude  were  not  empowered 
by  the  Chinese  Railway  Co.  to  continue  the  management  of  the  construction  works 
with  which  this  company  is  exclusively  entrusted. 

The  balance,  if  there  be  one,  shall  be  held  subject  to  the  order  of  the  Chinese  Rail- 
wav  Co 

Art.  21.  The  Chinese  Government  cedes  to  the  Soci6t6  d'Etude  an  option  till 
Becember  31,  1901,  to  purchase  the  surplus  of  the  loan,  to  wit:  73,500,000  francs  m 
90  per  cent  nominal,  plus  the  accrued  fraction  due  on  the  coupon. 

106229°— 19 19 


I 
I 

i 


*i 


IV  . 


290' 


lAILWAY  MATERIATJB,  EQFIPMEWT,  AFB  SUPPLIES. 


APPENDIXES. 


291 


tioM  niMle.  but  mcIi  iiotic#  nuBt  h%  for  a  gum  not  lees  iliau  25,000  000'  fimcii  net 

Boiiiicatoott  to  the:  muigcimnt.  of  tiie  Ctttun  .Baflway  C«. 

Th*  price  of  tliii»  Imdi  slmll  be  <l«p»ltod.iii  the  !)iiEk  dcaiiriiAtocl.  by  common 
accord,  by  tbe Chmmm Bailw Co.  md STsocMt^ d'Etude,  ^T^l'imBmmmler 


If  WHICH  an.  agieement  may  ^.„ .  „, 

tbe  right  of  option,  concuiiwl  it  by  article  21 . 

It^M  beocefartt,  wdcntood.  'tliat  tl»  nection  to  be  built  witli,  tlie  funda.  derived  from 
Ibe  fint.  option,  :diiill.  be  tbe  one  from  'B^tiug  toward  Oie  Y«llow  Kiver,  and  tbe  mirvey 

shall  be  begun  during  tbo  ^  firet  year.  t  -wi  ***»  mu\  my 

AiT.  24,  ,La  SocMti  d* Etude  reeervea.  tbe  right  to  malce  ^one  cm*  more  'wmm  bv  Dublic 
mbflmption  or  otherwise,  of  all  or  any  prt  of  the  bonds  whether  bought  oiSright 
(**achetAi  fcrmei*')  or  included  in  the  option.  *      "".irigat 


•nw  ^of^  the  bondf  'Covemi.  by  the  optiona. 
^  It  ahall  be.  •flowed  15  daya,  counting  from  the  cloeing  of  the  pubHc  subecripti^on   to 
Sl'^I'SfeLrSl^  Ifis  Excellency  8Iie*S;.  director  (^eml  of 

««  ^ liii«e^  IWlway  t&,  m.  Sbangfaai,  the  number  of  bonds  it  'has  taken,  and  that  al 

the  pnce  and  under  the  conditions  above'  ipedied. 

The  payment  and  the  delivery  of  the  'bondi  'taken  by  the  Soci^t^  d'tidfe  lollowin£ 
tlSin^,  'StiS!***'  **^^  "^^^  ^  conditions  spedfied  in  'the  above- 

^nT^;lMl^l  ''"^* '^f  "^l '¥  ^"^*^»«:  ~  ^^  ^"""^^  '^'Etude  inas- 
much  as,  it  shall  Ittve  the  MO'mise  that,  wi'tb  'the  excepSim  of  what  can  'ba  ntpptied  bv 

the  Manyang  woris,  all  'the  materials  and  supplies  aoGaaary  for  the  co^nstruction  and 

Exception  m  'made  for  'the  material  neceMary  for  the  equipment  ('"armement")  of 
the  line  Irom  Lukowkiao  to.  Paoling',  .as  this  material  u  almmt  entirely  ready 
Loniolian:'ce  wift  the  provisions,  of  'this  claiwe.  by  the  Chin^ese  Railway  CJo.  shaU 

Mult  from  the  ortering  rf  material  fot  each  of  the  sections  underta,ken. 
Materml  ordered  from  tbe  Societal  d'Etude  shall  be  exempt  from  all  euatoms  and 

li.kin  duties  on^ent«ri,ng  or  crcMnng  CMucse  territory. 

.11  laia  f rancl*'''"*^  •'-  — * —  -' -"^  ^  ^ ' " *  "    ■ ' 

'dale  on  'whici 

'feceipt  of  th,e 

rigiit  not  to  hold  .itaelf  bound! 

It  reserves  the  same  .right  and  within  the  same  'time  if  extnwrdinarv'  events  abould 
,anae..  m  for  iM'tance  wiT',  or'  if  the  ftench  debt  ('''rente  fmnsaise  ")  should  fall  below 
p.ftr. 

If,  on  ita^  side,  the  Soii&6^ Belge^should  not  keep  the  terms  of  the  present  contract 
It  shall  be  .annulled.;  the  Chinese  .Kailway  Co.  shafi  be.  .free  to  enter  into  contract  with 

w.k)U3«>eyer  It  may  wm  fit,  and  to  dispense  with,  the  .services  of  the  engineer  in  'chief 

Art.  2ti..  I..n  case  ol^controveisles  or  differences  'between 'the  Soci^t§d' Etude  or  its 
r- pri'.8:-nta.tive8  and  tliej.mperial  Cbinae  Government  or  the  Chinese  Railway  €o 
«*"f  <I"'»'*"'«>'^'™«  «  differences  sii.al.l  'be  submitted  to  the  judgment  of  a  member 
of  the  Ts'uiiE  Li.  Yamto  and.  the  .Belgian  Minister  in  China.   '     ^ 

in  case  of  diMeeinent  "between,  these  'latter,  the  Tsung  Li  Yam.§n  and  the  Bekian 
.MiiiiBler  ahall  designate  an  arbitrator  who  shall  decide  fi.nal.ly.  '  ' 

Art.  27.  .As.  guaranty  for  the  financial  e'Eecutioii'  of  the  presi^nt  contract,  the  Soci^t6 
d'  Etud.:;.  has  already  deposited  m  the  Ruaso-Chinese  .Bank  X.:20,000  as  security     

it  stiail  'take  fil.l  ;po«i'8iitti,  of  this  sum.  as  .soon  as  it  shall  .have  fulliliod  the  provisions 
stipulated  m  the  iiat  two  fMiapaphi  id  article:  IS  here  akmm.  Frovis.ions 


Tt  18  underefood  that  the  payment  of  8,600,000  franca  to  the  Russo-Chinese  Bank 
at  Shanghai  must  be  made  within  the  month  following  the  date  of  the  signing  of  the 
present  contract. 

Art.  28.  The  Tsung  Li  Yam§n  shall  be  bound  in  case  the  Belgian  Minister  at  Peking 
request  it  to  give  cognizance  of  the  title  to  the  minister  of  the  foreign  country,  indicated 
by  him,  as  subscriber  to  the  issue  of  stock .<» 

Art.  29.  The  present  contract  is  made  in  triplicate,  one  copy  for  the  Chinese  Gov- 
ernment, one  for  the  Chinese  Railway  Co.,  and  the  third  for  the  Soci^t^  d 'Etude  de 
Chemins  de  Per  en  Chine. 

In  cane  of  doubt  or  disagreement,  the  French  text  alone  shall  be  used  to  interpret 
the  contract. 

The  present  contract  must  be  submitted  through  the  proper  channel  for  imperial 
sanction,  and  when  said  sanction  has  been  obtained,  the  Taung  Li  Yam^n  must  ad\'ifle 
thg  Belgian  representative  at  Peking  by  official  dispatch  and  eventually  the  repre- 
sentative in  Peking  of  the  foreign  countrj'  to  whom  it  may  give  cognizance  of  the  title 
(*' le  reprc sentant  h  Pekin  du  pAjB  Stranger  auquel  le  titre  sera  notifi^").  These  for- 
malities shall  be  complied  with  within  the  month  following  the  signing  of  the  contract. 
The  provisions  of  the  contract  signed  at  Wuchang  May  27,  1897,  and  of  the  protocol 
signed  July  21, 1897,  which  do  not  conflict  with  the  present  contract,  especially  those 
of  article  14  of  the  Wuchang:  contract  and  article  2  of  the  Shanghai  protocol,  are  and 
remain  in  force.  The  Societ^^  G^n^rale  of  Brussels  and  the  Russo-Chinese  Bank  are 
parties  to  the  present  contract,  and  they,  after  having  examined  the  preceding  con- 
tract, declare  that  they,  as  far  as  necessary,  accept  the  duties  imposed.  According  to 
article  14  of  the  above-mentioned  Wuchang  contract,  the  Chinese  Railway  Co.  will 
only  recognize  the  Soci^t^  Beige  as  contracting  party. 

Done  at  Shanghai,  the  twenty-sixth  day  of  the  month  of  June,  one  thousand  eight 
hundred  ninety-eight. 

The  Engineer  represeniing  IA«  ^oci'^  d'Ettide  de  Ckemim  defer  en  Chine, 

The  JMreOor  General  of  the  Chmeu 
Railuay  Company. 
The  Representatives  of  the  Imperial  Chinese  Government: 
The  Viceroy  of  Hupeh,  The  Ticeroy  of  Oiihli. 

OPEEATING  COHTEACT. 

Between  the  undersigned: 

1.  The  Imperial  Chinese  Government,  represented  by  Their  Excellencies,  the  Vice- 
roys of  Chihh  and  of  Hupeh; 

2.  The  Chinese  Railway  Co.,  represented  by  His  Excellency  Sheng  Hsiian-huai, 
Its  director  general,  office  of  the  company  at  Shanghai; 

And  the  Soci^t^  d' Etude  de  Chemina  de  Fer  en  Chine,  whose  office  is  at  Brussels, 

Has  been  agreed  as  follows: 

Awr.  1.  The  Chinese  Railway  Co.,  in  accord  with  the  Imperial  Chinese  Government 

entrusts  the  Soci^t^  d' Etude  de  Chemins  de  Fer  en  Chine,  which  shall  appoint  re  pre- 

sentatives  for  that  purpose,  with  the  direction,  adminiatration,  and  operating  of  the 

^m^  from  Hankow  to  Lukowkiao  (Peking),  for  which  it  holds  a  concession,  under  the 

^^^^»^        of  an  edict  of  His  Majesty  the  Emperor  of  China  dated  October  20,  1890,  and 

of  which  a  copy  is  annexed  to  the  present  contract. 

Art.  2.  Tlie  Societe  d'Etude  shall  take  over  the  working  of  the  line  as  soon  as  each 
section  is  completed,  following  final  acceptance  by  the  Imperial  Administration  of 
Chinpsp  Railwavs.  Each  section  must  be  completely  and  previously  equipped  and 
provided  with  all  the  material  necessary  for  its  working,  as  well  as  with  the  supplies  of 
tools,  furniture,  and  a  fund  for  running  expenses.  The  Societe d'Etude  or  the  repre- 
sentatives it  shall  appoint  under  the  provisions  of  article  1,  shall  organize  the  various 
services,  shall  have  the  right  to  hire  the  personnel,  which  it  ahall  have  absolute  right 
to  dismiss,  or  disband,  and  to  fix  its  salaries  according  to  a  fixed  schedule  previously 
communicated  to  the  director  general  of  the  Chinese  Railway  Co.  It  shall  make  all 
purchasf  8  necessary  for  operating,  maintaining,  or  repairing  the  road;  it  shall  fix  the 
si;hedule  of  rates  in  the  terms  of  concession  contracts,  collect  revenues  of  all  kinds, 
and  pay  the  operating  and  management  expenses  of  the  company.  The  foregoing 
measures,  taken  for  the  purpose  of  operating  the  line,  shall  be  submitted,  for  consul- 
tative purposes,  to  the  director  general  of  Chinese  Railways. 

The  Chinese  Railway  Co.,  which  will  appoint  delegates  for  that  purpose,  shall  have 
absolute  right  of  control  over  the  receipts  and  expenses. 

The  purchase  of  all  new  material  or  works  for  the  improvement  or  extension  of  the 
rrjjular  road,  or  of  stations,  which  may  be  found  necessary  after  the  opening  of  each 

"81  lo  Mlnistro  de  Belgique  h  P&in  en  fttisait  k  demande  an  Tsung  Li  Yamen,  TOlui-ci,  seralt  l^u  de 
d^  ilr     ^*''"^  *"  Ministre  da  pays  stranger  qu'il  lui  d&igncrait,  comme  prenant  part  k  la  souscription 


A\ 


292 


lAILWAY  MATERIALS,  EQUIPMENT,  ANB  SUPPLIES. 


iection  of  the  line  to  traffic,  shall  be  at  the  aole  expanse  of  the  Chinese  Railway  Co, 
Ab  far  as  poaBible  the  wppliw  nec^eiaarv  for  the  maint-enance  and  repairing  of  the 
rotcl  ehall  be  ordered  from  the  worte  and  m,iiiei  under  the  control  of  the  director  gen- 
eral ol  the  (lilnes-e  Railway  Co. 


APPENDIXES. 


and  it  shall  be  carried  according  to  the  instrtictioM  of  the  director  general  of  th?  Chin?Be 
Railway  Co.  The  traMportation  of  anything  of  a  nature  to  injure  the  Imp -rial 
Chliipss  Government  ihaft,  moreover,  be  forbidden. 

Art,  4.  Out  of  the  receiptB  from  o^peration  aiwilaWe,  .after  payment  of  all  expensei, 
the  Soci^t^i  d' Etude  nhEll  retain  the  neceneary  team  to  iiwure  the  payment,  every  rfi 
months,  and  at  least  three  months  before  its  date  of  payment,  of  the  8er\dce  of  the  loan 
of  I12,HX),0CI0^  irancs  contracted  by  the  Imperial  Chinese  Government. 

'Thk  Teue'ri^e  ehail  he  made  m  long  as^  said,  loan  is  not  entirely  paid  off. 

The  amount  of  this  reserve  ehall  be  depeeited  monthly  with  the  Soci^t^  G^n^rale 
Beige  pour  favoriser  Flndustrie  Nationale,  or  with  the  company  designated  by  it. 
The  latter  shall  convert  into  gold  on  the  best  terms  procurable  the  sums  paid  to  it  for 
the  wrvice  ol  the  loan. 

'When,  'by  means  of  the  sums  thus  'paid  in,  the  service  in  .gold  of  the  loan  shMl  have 
been  insured,  the  Soci^^t^  d'Etude  shall  deduct  10  per  cent  of  the  surplus,  which  shall 
he  applied  to  tliu  creation  of  a  reserve  fimd  for  rebuilding  or  making  extraordinary 
WMurs  neoeneary  to^  insure  the  worWug  of  the  lines. 

It  shall  then  'piiy  the  'balance  remaining  avaMable  out  of  the  operating  revenues  to  the 
Chinese  Railway  Co. 

A'RT.  5.  The  duration  of  the  present  operati.ng  contract  m  fixed  at  30  years  dating 
from  the  signing  of  the  contract-. 

However,  thM  period  would  be  fully  entiaed  to  extension  in  case  the  loan  of 
112,500,000  francs,  should  'not  at  that  time  he  wholly  paid  .off;  this  extenaion  would  con- 
tinue m  long  as  the  complete  am.orti«ition  'had  not  oeen  made.  'But  M  the  refunding 
of  the  loan  should  be  made  before  the  dates  on  which  they  fall  due,  the  present  work- 
ing contract  will  be  annulled  from  the  date  of  the  total  refunding  of  the  loan. 

Art.  6,  D'uring  the  entire  period  of  the^  worWug'  of  the  'line  'by  the  Soci^t6  Beige, 
the  Chinese  Railway  Co.  grants  it  20  per  cent  of  the  net  profits  of  the  raihxjad  from 
Peking  to  Hankow,  as-  agreed  upon  by  mutual  consent,  after  the  closing  of  each  fi,scal 
term  ('"exercice  "'),  'tuMng  into  ■accoimt,  natoimiy,  the  sums  necessary  lor  the  service 
of  the  interest  and  the  amortiHition  of  the  loans. 

Abt.  7-  In  'Case  of  contentions  or  disagreement  between  the  Soci^t^  d*Etude  and 
the  management  of  the  Chinese  Railway  or  the  Imperial  Chinese  Government,  said 
coutentiow  .and  dinagieeinents  shall  'he  settled  as  specified  in  article  26  of  the  loan 
contiBct.. 

Am,  $,  If  the  revenues  from  o^perating  the  'lines  aie^  not  sufficient  to  cover  the  ex- 
■penses,  the  Chinese  'Railway  Co.  must  supply  the  Soci6t6  d'''Etude  with  the  necessary 
means,  to  ins'ure  the  ope»ting  of  the  lines  under  normal  conditions. 

AiT.  i.  All  materials  and  8ui>pliefl  needed  by  the  Boci6t6  d'Etude  for  the  working 
ol  the  line,  as  well  .as  lor  thC'  'maintenance  and  repair  ol  'the'  'line,  'Shall,  when  imported 
liom  abroad,  be  exempt  from  all  customs  or  likin  d'ues. 

Abt.  10.  The  present  contract  is  made  in  triplicate;  one  copy  for  the  Imperial 
Cliin:eae'  Government.,  one  for  the  Chinese  Railway  Co,,  and  the.  third  for  the  Soci^td 
d' Etude  de  Chemins  de  Fer  en  Chine. 

In  case  of  doubt  or  disagreement  the  French  text  sliall  alone  be  accepted  for  the  inter- 
pretation of  the  contract. 

'The  present  contract  must-  he  submitted  through  the  proper  channel  for  imperial 
sanction,  and,  when  said  sanction  shall  'have  bee.n  obtainea,  the  Tsung  'Li  Yamdn  must 
advise,  by  official  disptch,  the  Belgian  representative  at  Peking  and  eventually  the 
repreisentative  at  Peking  of  the^  foreign  government  to  which  the  title  may  be  officially 
notified  {*'(iuqmi  k  titre  »era  not^'^j. 

Done  in  Shanghai,  the  twenty^sixtliof  the  month  of  June,  eighteen  hundred  ninety- 
eight. 

fke  JJiifinccr  rtpretefding  the  Soditi  d'Etwde  de  Ckemins  defer  en  Chine. 

Hubert. 

TM  Director-Qenrnd  of  ike  CUneMe  Railway  Co, 

Shino-Hsuan-Hujj. 

S^en  for  authentication:  Witnesses: 


Meigmn  Conmd, 
'Tie  Repreflsntatives  ol  the  I'mperial  CMnese  Cbvemment: 
Tkfi  "Fwrof  (/'AfjEwl, 


Hu. 
Kg. 

The  Viceroy  of  ChiML 


CONTBACT  FOB  THE  SWPPUBMEllTAmY  LOAN  FOB  THB  FI7BPOSX  OF 
COMPLETING  THE  LINE  FBOM  PEKING  TO  HANKOW,  AUGUST  IS,  IDOf . 

[Translation  from  French  text  as  printed  in  Wang's  ''Railway  Loan  Agreements,** 

p«  'ti.j 

Between  the  undersigned: 

First.  The  Imperial  Chinese  Railway  Co.  represented  by  His  Excellency  Sheng 
Hsuan-huai  Kung  Pao,  director  general,  duly  authorized  by  the  Chineee  Government, 

Second.  The  Soci<'^t6  d'Etude  de  Chemins  de  Fer  en  Chine,  represented  by  M.  Jean 
Jadot,  engineer  in  chief,  director  of  the  line  from  Peking  to  Hankow,  holding  full 

It  has  been  agreed  as  follows: 

Article  I .  To  assure  the  completion  in  good  time  of  the  line  from  Peking  to  Hankow 
and  of  its  branches,  and  also  to  assure  the  payment  of  interest  on  the  loan,  until  the 
whole  line  has  been  put  into  operation,  the  two  contracting  parties  have  decided  t^o 
issue  a  supplementary  5  per  cent  gold  loan,  at  the  issue  price  of  90  per  cent,  to  the 
nominal  amount  of  12,500,000  francs,  represented  by  25,000  bonds  of  500  francs  each. 

Art.  II .  This  loan  is  subject  to  all  the  clauses  and  conditions  of  the  principal  5  per 
cent  loan  contract,  under  date  of  June  26, 1898,  and  of  the  operating  contract  annexed 
thereto,  especially  as  regards  the  rate  of  interest,  period,  amortization,  etc. 

Art.  III.  This  loan,  like  the  principal  loan,  has  the  guaranty  of  the  CMnese  Gov- 
ernment; and  it  has,  furthermore,  as  a  special  guaranty,  the  net  revenue  from  the 
( peration  of  the  Peking-Hankow  line,  including  the  extension  from  Lukowkiao  to 
Peking,  and  the  branches  forming  part  of  the  same  system,  after  deduction  of  the  sums 
necessary  to  assure  the  services  ol  the  principal  loan  of  1898. 

Art.  IV.  The  purpose  of  the  present  supplementary  loan  being  to  assure  the  com- 
pletion of  the  whole  line ,  every  effort  will  be  made  to  avoid  exceeding  it .  If,  however, 
after  the  completion  of  the  line  toward  the  close  of  1905,  besides  the  ordinar>'  expenses 
of  upkeep  and  current  repairs,  and  besides  the  service  of  the  loan  and  the'deduction 
of  10  per  cent  for  rebuilding  or  extraordinary  repairs  (according  to  article  IV  of  the 
operating  contract)— expenses  which  will  be  covered  by  the  operating  revenues — 
there  are  expenses  to  be  incurred  for  the  final  work  or  orders  for  new  material,  or  any 
extension  works  whatsoever — expenses  which  (according  to  article  II  of  the  operating 
contract,  and  according  to  the  rules  generally  adopted  in  railway  business)  should  be 
charged  to  the  capital  account — these  expenses  will  be  covered  by  that  share  of  the 
net  profits  which  should  accrue  to  the  Imperial  Chinese  Railway  Co.;  if  that  share 
hhould  not  suffice  to  cover  these  expenses,  the  Imperial  Chinese  Railway  Co.  should, 
of  course,  in  conformity  with  the  operating  contract,  fimiish  the  fimds  to  cover  them. 

These  expenses  can  only  be  incurred  after  a  previous  agreement  with  the  director 
general  or  his  delegate. 

Art.  V.  After  the  completion  of  the  whole  line  the  operating  service  ^lill  become 
more  and  more  important.  The  Imperial  Chinese  Railway  Co.  has  named  a  delegate 
who  (in  conformity  with  article  II  of  the  operating  contract)  should  examine  in  ad- 
\ance,  with  the  delegate  of  the  Soci6t6  d';6tude  de  Chemins  de  Fer  en  Chine,  all 
measures  for  the  purpose  of  assuring  the  perfect  organization  of  the  various  services 
dud  see  to  the  proper  execution  of  those  measures,  the  Society  d'Etude  de  Chemins 
de  Fer  en  Chine  being  charged  by  the  Chinese  Govermueut  with  the  operation  of  the 
line,  by  virtue  of  the  operating  contract. 

Art.  VI.  If,  in  the  future,  the  construction  of  new  branches  is  decided  upon,  the 
Imperial  Chinese  Railway  Co.  must  furnish  the  necessary  funds,  either  by  means  of 
its  share  of  the  net  profits,  or  otherwise.  The  Imperial  Chinese  Railway  Co.  will  be 
free  to  choose  such  means  as  it  sees  fit. 

Art,  VII.  The  present  contract  is  drawn  up  in  four  copies,  one  of  them  for  the 
JH^ese  Government,  one  for  the  Imperial  Chinese  Railway  Co.,  one  for  the  legation 
^Belgium  in  Peking,  and  one  for  the  8oci6t^  d'Etude  de  Chemins  de  Fer  en  Chine. 
~n  case  of  doubt  or  difference,  the  French  text  alone  will  be  authoritative  for  the 
interpretation  of  the  contract. 

Art.  VIII.  When  the  contract  shall  have  received  imperial  sanction,  the  Ministry 
of  Foreign  Affairs  (W'aiwupu)  will  give  instructions  by  telegraph  to  His  Excellency 
the  Minister  of  China,  in  Brussels,  for  the  signature  of  the  25,000  bonds  for  the  loan,  in 
the  name  of  the  Chinese  Government. 

Notice  of  the  imperial  sanction  and  of  the  instructions  given  to  the  Chinese  minister 
at  Brussels  will  be  given  by  the  Waiwupu  to  the  minister  of  Belgium  in  Peking. 

If  the  minister  of  Belgium  requests  it  of  the  Waiwupu,  the  latter  will  adyise  the 
minister  of  such  foreign  country  as  may  be  designated  to  him  as  taking  a  part  in  the 
subscription  for  the  bonds. 

Done  at  Peking,  August  thirteenth,  nineteen  hundred  and  five. 

J.  Jadot. 

&HBKQ. 


Il 


APPENDIXES. 


^«7<) 


Appenii  1— PEKING-NEWCHWANG  RAILWAY, 

msMmirAST  AOBniaifT  BKrvmr  tsb  hohgkong  a  shanghai 
BAmmfG  coBFOEAnoii  Ajm  MMMmm  gihibai.  hu.  BBspicTnre 

TUB  WHlfQ-llBWCHWAlfG  BA1I.WAT  I.O,Alf . 


Tliia  IS  ft  preHmmtry  .ngreement  made  between  His  Excollencv  Hu,  Governor  of 
Pekiiig  and  adiiiuiMtimtor  psneiml  of  the  ImpetM  Rftilwiys  of  ^orth  China  within 
and  without  the  Great  Wall,  hereinafter  called  the  administrator  general,  of  the  one 
part,  and  the  HoiigtoiK  &  Bhaigliai  Banking  Corporation,  representing  a  British 
eyndirate,  hereinafter'  €ai:«d  the  ■■jadieate,  of  the  other  part. 

1.  The  Byndicate  is  hereby  authoriied  by  the  administrator  general  to  make 
acrangements  to  ioat  and  i«ue,  on  behalf  of  the  Railway  Administration,  on  the  best 
terma  obtainable  on  the  market,  a  sterling  loan  for  the  equivalent  of  about  16,000,000 
taels,  for  the  constniction  of  a  railway  line  from.  Chnnghoiifloti  to.  Hainmingtien,  and  a 
branch  line  to  Yin^tzu,  and  for  the  rodeni.ption  of  'eiSiting  loans  to  the  Tientsin- 
8han.hal..kwan  and  'Tientsin-Lnkowkiao  lines, 

2.  The  imcurity  for  the  loan  shall  be  the  permanent  wav,  rolling  stock,  and  entire 
property,  together  with  the  fw^igjit  and  earnlngB  of  the  existing  lines  between  Peking, 
Tientain,  'Tangku,  and  Oiniigh'Otisou.  aiid.,Al.9o  of  the  proposed,  new  lines,  when  con- 
•tnicted.  in  addition  to  the  lighlB  of  m,ining  coal  and  iron,  which  will  be  retained 
by  the  Railway  Adminurtimtion  on  each  side  of  the  proposed  new  lines,  for  a  distance 
to  be  detunnined.  In  the  event  of  default  or  arreara  in  payment  of  interest  or  pay- 
menta  of  principal,  the  said  lailwsy  lines  and  mines  shall  be  handed  over  to  repre- 
■en.ta.tivea.  deputed  by  th.e  ;Byniicat«,  to  m.an.age  them  on  their  behalf,  until  principal 
and  mtereat  of  'the  loaii'  m  redeemetl  in  full,  when  the  management  will  revert  to 

It  will,,  however,  b«  "provided  that  if  .such  arrean  are  for  a  .smi^l  sum,  and  it  appeare 
dflsiimbfo  to^  the  syndicate  to  exten.d  the  due  'date  of  'their  pa3rmen.t  for  a  term  not 
exceeding  three  months,  it  shall  be  open  to  the  indicate  to  clo  so. 

In  th.e  event  of  any  nMcJal  cifcimstaiices.  :ari8ing,  n'ec«BiilBting'  the  introduction  of 
'iBific^rfeattt  changes  by  tte  .BMoagemeiit  :afoi«8aid,  these  changes  shall  be  effected  in 
'Onisnitetbn  'wi;th  the  .adiii]Blstni.tor  general.,  .and  in  the  beet  mterests  of  the  railway. 
.In.  the  case  of  war-  or  famine,  troops  and  grain  will  be  t.ran8port,ed  over  the  line  on 
terms  to  be  arranged  hereafter. 

No  further  .loan,  charge,  or  nortpif^  shall  be  chai^ged  on  th.e  security  named  above 
itn.til.  this,  loan  'is  redeemed.. 

3.  During  the  currency  of  the  loan  the  principal  members  of  the  railway  staff  shall 
be  canable  and  experienced  Europeans,  i)rho  shall  be,  as  at  present,  appointed  by 
the  aoministsator  general  of  the  miiway,  and  may  be,  in  the  event  of  their  misconduct 
or  incompetency,  dismiased,  after  consultation  with  the  chief  engineer.  If  there  are 
Chinese  with  sufficient  engin.ee.ring  or  traffic  experience,  they  .may  be  appointed  as 
well  as  Europeans.  Should  it  be  necessary  to  appoint  a  new  chief  engineer,  such 
.apnointment  .sh.all  be  made  in,  consultation  with  the  .syndicate. 

In.  addition  to  above,  a  capable  ani  experienced  European  railway  accountant 
Bh.all  be  appointed  to  inspect  all  the  accounts  of  the  railways. 

All  receipts  and  earnings  of  the  lines  herein  specified  shall  be  paid  in  to  the  credit 
of  'the  .Bail.vay  Admiaistation  with  the  .Hongkong'  &  Shaoghiii  Banking  Cor{>orati^ 
Tientsin,  together  with  50,000'  taela  annually  payable  under  the  Board  of  .Revei^Hi 
amnge»en.t,  approved  by  the  Th.rone,  by  each  of  the  Provinces  of  .Shansi,  SheHf 
Honan,  and  Anu'wei,  for  the  railway  purposes  for  10  vears. 

All  ex.pe'nfi«  of  repairin|jr  and  maintaining  lines  wHl  be  paid  from,  this  account,  the 
rem:ainder  of  which  shall  then  be  chareed  'with.  'the  sendee  of  this  loan. 

4.  The  .rate  of  interest,  price,  term  ol  years,  and  other  particukrs  shall  be  left  to  the 
syndicate  to  a.rra..nge,  on  the  beat  terma  possible,  on  the  market,  when  the  moment 
appears  favorable  lor  floating  the  loan.  Instalhnents  of  proceeds  will  be  arranged 
as  far  as  possible  to  suit  the  progress  of  construction  and  the  reouirementa  of  the 
administrator  general,  interest  being'  calculated  from  the  date  of  such  payments. 
The  loan  w;il.l  be  redeemahle  hy  the  annual  'drawings  to  he  scheduled  in  the  inal. 
.agreement..    .B-esidea  the  dm:wingS'  m  scheduled  the  administrator  general  may  from 

2'fU 


time  to  time,  on  giving  due  notification  to  the  syndicate,  call  for  extra  drawings  to 
be  held,  bonds  so  drawn  being  redeemed  by  the  Railway  Administration  at  20  per 
cent  premium  on  their  par  value. 

5.  If  it  shall  be  found  that  the  loan  can  not  be  floated  without  the  introduction  of 
some  special  attraction,  the  administrator  general  shall  memorialize  the  Throne, 
recommending  that  a  concession  of  mining  righte  be  granted  to  the  syndicate  at  a 
pint  or  points  on  the  lines,  and  on  terms  to  be  arranged  with  the  syndicate  on  the 
basis  of  the  mining  regulatbns  newly  established  by  the  Tsung  Li  Yamen.  The  re- 
cjucsta  of  the  syndicate  will  be  confined  to  mines  within  a  distance  of  5  li  of  the  railway. 

6.  The  date  of  issue  of  this  loan  shall  be  left  to  the  discretion  of  the  syndicate,  to  be 
fixed  in  accordance  with  the  state  of  the  market,  but  should  it  be  found  impossible 
to  issue  it  before  the  1st  day  of  October  next,  the  sj'ndicate  will  arrange  to  advance 
to  the  administrator  general,  on  or  about  that  date,  an  installment  of  about  2,000,000 
taels  on  account  of  and  repayable  out  of  the  proceeds  of  the  loan  when  floated.  The 
terms  of  this  advance  shall  be  left  to  the  arrangement  of  the  syndicate  on  the  best 
terms  obtainable,  interest  not  to  exceed  the  rate  of  5J  per  cent  per  annum,  and  the 
syndicate  shall  be  authorized  to  issue  temporary'  bonds  for  the  amount  if  required. 

7.  For  the  satisfaclion  of  the  investing  public  who  are  unacouainted  with  China 
a  satisfactory  report  will  be  required  from  the  district  engineer,  Mr.  J.  Ginnell,  as  to 
the  condition  and  earning  power  of  the  old  lines,  and  as  to  the  route,  prospects,  and 
mineral  wealth  of  the  new  lines  to  be  constructed,  and  Mr.  Ginnell  shall  be  instructed 
bj'  the  administrator  general  to  proceed  to  London  as  soon  as  possible  after  the  signing 
of  thispreliminary  agreement,  to  confer  with  the  syndicate  on  these  matters. 

8.  The  terms  of  this  preliminary  agreement  will,  immediately  after  signature,  be 
submitted  by  the  administrator  general  to  the  Throne  for  sanction  by  the  imperial 
edict,  which  shall  be  officially  communicated  by  the  Tsung  Li  Yamen  to  the  British 
minister  in  Peking. 

9.  Three  months  from  the  date  of  signature  of  this  preliminary  agreement  shall  be 
allowed  to  the  syndicate  to  accept  or  decline  its  terms.  Upon  their  confirmation  by 
the  s^'ndicate,  this  preliminary  agreement  shall  be  replaced  by  a  definite  agreement, 
pro^nding  for  all  details. 

Signed  at  Peking,  this  7th  day  of  June,  1898,  being  the  19th  day  of  the  4th  moon 
of  the  24th  year  of  the  Emperor  Kuang  Hsu. 

(Seal  of  Administrator  General  of  Railwaya  within  and  without  the  Shanhaikwan 
boundary.) 

For  the  Hongkong  &  Shanghai  Banking  Corjjoration. 

(Signed.)  E.  G.  Hillier,  Agent 

DIFINITX  AQBKEMEIffT  BETWEEN  THE  BBIXISH  A  CHimSSE  COBPOBA- 
TIOM  (LTD.)  AHB  DIXECTOB  6ENEBAI.  HV,  BSSPSCTIirG  THE  PEKma- 
mWCHWAlTG  BAIXiWAY  LOAH. 

This  agreement  is  made  between  His  Excellency  Hu,  Governor  of  Peking,  as 
administrator  general  of  the  railways  of  Nortli  China  within  and  without  Shanhaikwan, 
acting  under  the  authority  of  the  Imperial  Chinese  Government,  hereinafter  callS 
the  administrator  general,  of  the  one  part,  and  the  Hongkong  &  Shanghai  Banking 
Corporation,  for  themselves  and  on  behalf  of  the  British  firm  of  Jardine,  Matheson  & 
Co.,  representing  as  joint  agents  the  British  &  Chinese  Corporation  (Ltd.),  hereinafter 
called  the  corporation,  of  the  other  part: 

Whereas,  on  the  7th  day  of  June,  1898,  being  the  19tli  day  of  the  4th  month  of  the 
24th  year  of  the  Emperor  Kuang  Hsu,  a  preliminary  agreement  was  signed  at  Peking 
between  the  administrator  general  and  tne  Hongkong  &  Shanghai  Banking  Corpora- 
tion, representing  a  British  syndicate,  for  a  sterling  loan  for  the  equivalent  of  about 
16,000,000  taels  for  the  construction  of  a  railway  from  Cliunghousou  to  Hsinmingting 
and  a  branch  line  to  Yingtzu,  and  for  the  redemption  of  existing  loans  made  to  the 
Ticntsin-Shanhaikwan  and  the  Tientsin-Lukowkiao  Railway  lines;  and 

Whereas,  the  Hongkong  &  Shanghai  Banking  Corporation,  before  the  expiration  of 
the  period  named,  duly  notified  the  administrator  general  that  it  is  prepared,  with 
( crtain  modifications',  to  arrange  the  issue  of  the  loan  upon  the  conditions  named  in 
1  h o  I  >rel imi nary  agreements : 

I .  The  corporation  agrees  to  issue  on  behalf  of  the  administrator  general  a  sterling 
kii.n  for  the  amount  of  X2, 300,000,  the  proceeds  of  which  are  to  be  applied  in  the  order 
following: 

( a )  To  the  redemption  forthwith  or  at  maturity  of  the  loans  and  advances  specified 
in  the  statement  attached  to  this  agreement  which  have  been  made  by  foreign  banks 
to  the  Tientsin-Shanhaikwan  and  the  Tientsin-Lukowkiao  Railway  lines.  The 
administrator  general  hereby  certifies  that  the  total  amount  of  the  liabilities  due  by 
the  lines  named  does  not  exceed  the  sum  of  3,000,000  taels. 


\ 


m 


1>  i  ¥¥  'llf  A  "V    'TUT  A  WVHt  A  T  Q      11!  ATTtlB'TlfWTOr'P       k  TOTTl    CTTTJiyr  TT7Q 
ItAlij  W  ii.  I     JH.ii..l fjA liLLiSi    Mi^  U  IJrM.l?j Vi  J.  |    A.^  .LI    o  U  Jr  Jrlji  JiitJm 


TO'  the  canyiiig  oiit^  within  a  period  of  three  ycare  from  the  date,  of  this  agree- 
mem't,,  of  certain  improYemento  .and  additions  to  rollinK  stock  of  the  existing  Tines 
between  Peking  twi  Shanhaikwan,  recommended  by  the  European  chief  engineer, 
and  estimated  by  him  to  cost'  al)out  1,500,000  taels. 

(c)  To  the  coiwtriiction  of  a  railway  line  from  Chnnghoimoii  to  Hsinmingting,  and 
one  from  a  point  on  that  line  nMr  Shihsanchan  to  Yingtzu,  and  of  a  branch  line  from 
Mnerhho  to 'the  collieries  of  Ntnpiao. 

The  administrator  general  engages  that  the  construction  of  the  new  lines  here  speci- 
fied shall  be  completed  'within  a  period  of  'three  years  from  the  date  of  this  apeement, 

2.  In  the  event  of  the  proceeds  of  "this  loan  'being  insufficient  for  the  completion  of 
the  new  lines  here  specified,  the  adrainbtnitor  pneral  will  provide  or  will  smrange 
with  the  Imperial  Government  of  China'  to'  provide  funds  from  other  sources  sufficient 
to  complete  'their  construction. 

3.  Tnis  loan  shall  he  a  first  charge  u|>on  the  security  of  the  permanent  way,  rolling 
stock,,  and  entire  'nroprty,  with  the  freight  and  eamingS'  of  the  existing  lines  between 
Peking  and  ShaniiaiKwan,  and  on  the  frelgh'ts  and  earnings  of  the  new  lines  when 
constructed.  The  .administrator  general  shall,  during  the  continuance  of  th,is  loan, 
maintain  'the  railway  buildinp,  'works,  rolling  'Stock,  and  dependencies  in  good  order 
and  co'ndition,  and  shall  inrreitie.  'the  rolline  ^itock  'from  'time  to  time  to  such  extont 
as:  shall  be  necessary  for  the  're<|ulremente  of  ttmffic. 

Should  it  be  decided,  h'ereafter  to  construct  branch  lines  or  extensions  connecting 
with  the  lines  herein  named,  their  construction  shall  be  undertaken  by  the  Railway 
Administntion,  and  should  the  funds  of  the  Railway  Administration  be  insufficient 
for'  that  'purpose,,  it  .shall  apply  to  the  corporatio'n  for  'the  same. 

4.  The  pnncipal  and  int'Crest  of  th'is  loan  are  guaranteed  by  the  Imperial  Govern- 
ment of  Oiina,  and  in  the  event  of  default  in  payment  of  interest  or  repayment  of 
principal  at  due  date,  the  corpomtian  shall  immediately  notify  the  Imperml  Govern- 
ment of  China  thereof,  and  the  Imperial  Government  of  China  will  thereupon  provide 
the  funds  necessary  to  meet  such  payments  in  sterling  in  London.  In  tne  event  of 
the  Imperial  Government  of  China  l>eing  unable  to  T)ro\4de  the  funds  necessary  to 
■meeting  a  payment  of  interest.  'Or^  'p.rincipal  when  callea  upon  by  the  corporation  to  do 
■o,  'in  terms  of  this  clause,  the  said  railway  lines  and  entire  |>roperty  shall  thereupon 
he  handed  over  to  renrteentatives  deputed  by  the  corpomlion  to  manage,  on  their 
behalf,  until  principal  and  interest  of  the  loan  have  been  redeemed  in  fnll,  when  the 
management  will  revert  to  the  Railway  Adminifitration.  It  is  ];>rovided  tnat  should 
arrears  of  interesl  or  principal  be  for  a  small  sum,  and  it  appear  desirable  to  the  corpora- 
tion to  extend  the  dFue  date'  of  their  payment  for  a  term  not  exceed,ing  three  months, 
it  shall  be  open  to  the  corporation  to  do  so. 

Thin  arrangement,  which  differs  from  other  contracts  in  that  the  administrator 
nmsml.  retains  'control  of  the  rail.way  lines  so  long  .as.  the  principal  and  interest  of  this 
loan  are'  ;regtthirl,y'  '|>aid,,  has  'been  a|!;reed  to  in  conseiiuenre  of  the  friendly  relations 
which,  have  long 'existed  lietween  the  eont.racting  parties.. 

5.  No  further  loan  shall  be  charged  upon  the  security  named  above,  except  through 
the  corporatioii,  until,  the  loan  is  redeemed;  and  the  Tsung  Li  Yamen  will  hand  to  the 
'B'ritish.  'minister  in  Peking  a 'written  'undertaking  on,  behalf  of  the  Imperial  Government 
of  China,  that  the  railway  lines  named  in  this  agreement  shall  never  be  alienated  or 
parted  with. 

6.  During  the  cunrencv  of  this  loan  the  chief  engineer  of  the  railways  shall  be  a 
Britlah  subject.  The  pi^ncipal  members  of  the  railway  staff  shall  be  capable  and 
experienced  Europeans,  who  shall  be,  as  at  present,  appointed  by  the  administrator 

Seneral  of  the  railways,  and  may  be,  in  the  event  of  their  misconduct  or  incompetency, 
lismiased,  after  con0iil.tation  with  the  chief  engineer. 

If  there  are  Chiu'Cse  with  .sufficient  engineering  or  traffic  experience  they  may  'he 
appointed  as  well  an  Europeans. 

Should  it  be  necessary  to  appoint  a  new  chief  engineer  such  an  appointment  shaU 
be  made  in  consultation,  with,  'tne  corporation. 

In  addition  to  the  above,  a  capable  and  efficient  European  raHway  accountant 
shall  be  appointed,  with  full  powers  to  organize  and  direct  the  keeping  of  the  railway 
accounts,  and  to  act  with  the  administrator  general  and  the  chief  engineer  of  the  rail- 
way 'in  the  supervision  of  ref!eipta  and  expenditures. 

7.  The  railway  lines  named  in  the  agreement  being  Imperial  Government  lines,  in 
the  event  of  war  or  famine  Chinese  Government  troops  and  grain  may  be  transported 
over  me  ones  tree. 

8.  All  receipts  and  earnings  of  the  lines  herein  speciied  shall  be  paid  into  the  credit 
of  the  Railway  Adminintrstion  with  the  Songkong  A  Shanghai  Banking  Corporation, 
Tientsin,  together  with  50,000  taels  annually  payable,  under  the  Board  of  Revenue's 
arrangement  approved  by  the  Throne,  by  each  of  the  Provinces  of  Shansi,  Shensi, 
Honan,  and  Annwei,  for  railway  purposes  for  10  years. 


APPEHDIXBS. 


297 


\ 


All  expenses  of  working  and  maintaining  the  lines  will  be  paid  from  their  receipt, 
and  earnings,  the  remainder  of  which,  together  with  the  provincial  funds  above  nameds 
shall  then  be  charced  with  the  service  of  this  loan.  Payments  of  interest  and  repay- 
ments of  principal  shall  be  made  in  equal  monthly  installments,  and  in  accordance 
with  the  amounts  and  dates  of  ayeariy  schedule  which  will  be  furnished  to  the  admin- 
istrator general  by  the  bank.  These  payments  shall  be  made  bv  the  administrator 
general  to  the  Hongkon?  &  Shanirhai  Banking  Corporation,  Tientsin,  in  Hongpinff 
sycee  sufficient  to  provide  the  sterling  amount  due  to  the  bondholders  m  terms  of  the 
prospectus  of  the  loan,  the  rate  of  exchange  for  these  payments  being  fixed  by  that 
bank  as  each  such  payment  becomes  due.  In.  reimbursement  of  expenses  incurred  in 
connection  with  the  distribution  of  the  service  to  bondholders  of  the  principal  and 
interest  of  the  loan,  the  Hongkong  &  Shanghai  Banking  Corporation,  Tientsin;  shall 
receivefrom  the  Railway  Administration  a  commission  of  i  per  cent  on  the  annual  loan 
service  which  will  be  mcluded  m  the  yearly  schedule  for  the  same. 

9.  The  term  of  the  loan  shall  be  45  years,  and  subject  to  the  modification  men- 
tioned hereinafter,  repayment  of  the  principal  shall  be  made,  so  far  as  re«^rds  the 
bondholders,  in  40  equal  annual  installments  commencing  with  the  sixth  j^ear 

10.  Interest  on  the  loan  shall  be  charged  at  the  rate  of  5  per  cent  per  annum  on  the 
nominal  principal  and  shall  be  calculated  on  the  balance  of  such  principal  at  any 
time  outstanding,  pa>Tnents  of  interest  being  made  by  the  administrator  general  in 
accordance  with  the  amounts  and  dates  specified  in  the  yearly  schedule  to  be  provided 

11.  The  loan  will  be  redeemed  by  annual  drawings  in  London,  as  provided  for  in 
the  prospectus.  Besides  the  drawings  as  provided  for,  the  admistrator  general  mav 
on  giving  three  months'  notice  to  the  corporation,  call  for  extra  drawings  to  be  held 
for  any  amount.  Bonds  so  drawn  to  be  redeemed  by  the  Railway  Administration  at 
20  per  cent  premium  on  their  par  value.  Any  such  extra  drawings  must  take  place 
on  the  date  of  the  ordinary  drawing  provided  by  the  prospectus. 

In  the  event  of  such  extra  drawings  taking  place,  subsequent  payments  of  interest 
will  be  adjusted  m  the  yearly  schedule  to  be  provided,  but  the  repayments  of  prin- 
cipal shall  contmue  unaltered  in  t  rms  of  clause  9  of  this  agreement  until  the  loan  is 
redeemed. 

The  Imperial  Government  of  China  hereby  engages  that  this  loan  shall  not  be 
redeemed  or  converted  otherwise  than  as  herein  provided. 

12.  The  price  agreed  upon  for  this  loan  is  90  per  cent  net  of  the  nominal  principal 
hut  should  an  unfavorable  state  of  the  market  prevail  at  the  time  of  issuing  the  pW 
pectus  the  corporation  is  herby  authorized  to  reduce  the  price  of  the  loan,  at  its  own 
discretion,  to  not  less  than  88  per  cent  net  to  the  Railway  Administration 

13.  The  corporation  is  hereby  authorized  to  issue  to  subscribers  to  the  loan  bonds 
for  the  total  amount  of  the  loan  in  pounds  sterling,  in  such  form  and  for  such  amounts 
as  shall  appear  desu^ble  to  the  corporation,  and  the  Minister  for  China  in  London 
will  seal  all  such  bonds  with  his  official  seal,  as  evidence  that  the  Imperial  Govern- 
ment of  China  is  bound  thereby.    Each  such  bond  shall  bear  the  following  clause- 

*'The   Imperial  Government  of  China,   pursuant  to  an  imperial  edict    dated 

••;•.  unconditionally  guarantees  and  declares  itself  responsible  for  the  pay- 

ment  of  the  principal  moneys  and  interest  hereby  secured,  and  in  faith  thereof  it  has 
specially  authorized  the  Chmese  Minister  in  London  to  seal  this  bond  with  his  official 
seal." 

14.  All  bonds  and  coupons  and  payments  made  and  received  in  connection  with 
this  loan  shall  be  exempt  from  Chinese  taxes  and  imposts  forever. 

15  All  details  necessary  for  the  prospectus  and  connected  with  the  service  to  the 
bondholders  on  the  interest  and  repayment  of  principal  of  this  loan,  not  herein 
explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the  corporation,  who  are 
hereby  authonzed  to  issue  a  prospectus  of  the  loan  as  soon  as  possible  after  the  siim- 
ing  of  this  agreement.  ^ 

The  Tsung  Li  Yamen  will  instruct  the  Chinese  Minister  in  London  to  cooperate 
with  the  corporation  m  any  matters  requiring  conjoint  action. 

16.  The  loan  shall  be  issued  to  the  public  as  soon  as  possible  after  the  signing  of 
this  agreement,  and  shall  date  from  the  first  of  the  month  of  its  issue.  Payment  of 
the  entire  proceeds  will  be  made  in  London  to  the  order  of  the  administrator  general 
not  kter  than  March  31,  1899;  of  the  above  proceeds  the  corporation  will  advance  to 
tlie  order  of  the  administrator  general  in  London,  on  or  before  October  31  next,  the 
sum  of  £250,000;  this  advance  will  bear  interest  at  the  rate  of  5 J  per  cent  per  annum 
until  such  time  as  the  first  installment  of  the  loan  proceeds  shall  be  available  when 
it  shall  be  deducted  from  those  proceeds  by  the  corporation.  ' 

17.  In  the  event  of  an  unfavorable  state  of  the  market  rendering  the  issue  of  this 
loan,  and  the  payment  of  its  proceeds  to  the  Railway  Administration,  impossible  on 
the  terms  named  without  loss  to  the  corporation,  the  corporation  shall  be  granted 


f 


M&O' 


RAILWAY  MATEBIAIiS,  .BQUIPME'FT,  AH'D  SUPPLIES. 


iucli  extension  of  time  fm  the  performaiice  of  its  contimct  with  the  administrator  gen- 
eral, as  the  circumst&ncee  demiuid,  mny  advances  or  installments  of  proceeds  alr^idy 
made  tO'  the  Railway  Adniinistration  oeing  in  that  case  treated  as  regards  payment 
of  interest,  repayment  of  principal,  aecnrity,  and  Im,p€rial  Chinese  Government 
guaranty  in  terms  of  this  present  agreement  and  as  forminR  jmrt  of  the  principal 
amount  of  this  loan.  Similar  ©xtenacin  of  time  for  the  issue  of  this  loan  and  payment 
of  its  proceeda  :iihali  also  l>«i  granted  in  the  event  of  the  Deutsch-Asiatische  Bank, 
Berlin,  objecting  to  its  issue  Mfore  the  month  of  April  next,  in  accordance  with  the 
terms  of  clause  9,  of  the  .agreement  lor  the  Chinese  Imperial  Government  4|  per  cent 
sterling  loan  of  1898. 

18.  Immediately  alter  the  signature  of  this  agreement,  and  before  the  issue  of  the 

froepectus  of  the  loan  to  the  public,  the  administiator  general  will  memorialize  the 
'hrone  and  obtain  an  Imperia!  edict  (Xiafirminp  and  fmctioning  the  provisions  of  this 
agreement,  the  imperial  edict  so  received  bein^'  then  communicaied  officially  and 
without  delay  by  the  Tsung  Li  Yamen  to  the  British  Minister  in  Peking. 

19.  The  corporation  may,  subject  to  aU  ita  obligations,  transfer  or  delegate  all  or 
any  of  its  rij^hts  and  discretionH  to  any  British  company,  directors,  or  agents,  in  con- 
sultation with  the  adminiatmtor  general,  with  or  without  power  of  further  transfer 
and  subdelegation. 

20.  This  agreement  is  executed  in  quadruplicate  in  Englisli  and  Chinese,  one  copy 
to  be  retained  b}^  the  administrator  general,  one  by  the  Tsung  Li  Yamen,  one  by  tne 
British  Minister  in  Peking,  and  one  by  the  corporation.  Should  any  doubt  arise  aa 
to  the  interpretation  of  the  contnct,  the  En^Usn  text  shall  be  accepted  as  standard. 

Signed  at  Peking  by  the  contracting  p«irties  this  25th  day  of  the  eighth  month  of 
the  twenty-fourth  year  of  the  Emperor  Kuang  Hau,  being  the  10th  day  of  October, 
" \  Western  Calendar. 


Ill 


Appendix  5.— CANTON-KOWLOON  RAILWAY. 

2n^^i?l^^^^^  ^^PnSL*^^*^^  ^^  ^=^  BRITISH  &  CHINESE  COR- 
l^^^^rStl^lI^^  ^^^  ^SSUE  AND  REGULATION  OF  A  LOAN  FOB 
JHE  CONSTRUCTION  OF  A  RAILWAY  FROM  THE  CITY  OF  CANTON  TO 
J?£,®^™^^Y  ^^  THE  KOWLOON  LEASED  TERRITORY  UNDER 
BRITISH  CONTROL  (HEREINAFTER  CALLED  THE  RAILWAyT 

fK.vI'wr" f  ™®"*  H  T"^""  at  Peking  on  the  twenty-third  day  of  the  first  month  of  the 

I«H  fhi  nnlL'^T-  '^^^  ^''''  corresponding  to  the  seventh  day  of  March,  1907, 

and  the  contracting  parties  are:  •'  »  » 

,lJ^®h^  RWfJS^'/'^ri?-^  "'''^o  *^^  a^uthority  of  an  imperial  decree,  of  the  one  part. 
?f^ the  othef  art  Corporation  (Ltd.)  (hereinafter  called  the  corporation) 

Fv^pltS.  5i,P'^"n^''^7  agreement  was  made  on  March  28,  1899,  between  Hia 

£Tw?nI;^h«^o.?if''-^'"  9T'?i  ^^  the  Iniperial  Chinese  Railway  Administration 

fir^  ?f  T^^Ll   M^*^''*^?^^^^  T'^'T  ^'  T*"^^"'  «^  ^^«  one  part,  and  the  British 
l^rm  of  Jardine,  Matheson  &  Co.,  for  themselves  and  on  behalf  of  the  Hongkong  & 

nf  h?/^fi  o'"'!!  -^^  Corporation,  representing  as  joint  agenta  the  corporation,  of  the 
01  her  part  and  it  wa^  part  of  the  objects  thereof  that  the  terms  of  another  preliminary 
!S^lT!?''^^^i?'^-^^^  ^^""^  contracting  parties  on  May  13,  1898,  should  be  thereby 
adopted  as  a  prafimmary  agreement  for  the  construction  and  working  of  a  railway 
fr<.m  the  city  of  Canton  to  the  boundary  of  the  Kowloon  leased  territory  under  British 
control  subject  however  as  far  as  might  be  practicable,  to  the  terms  and  conditions 
•  *iied  amfStffi^      ^"  contract  for  the  Shanghai-Nanking  Railway  when 

Now  it  is  hereby  agreed  by  and  between  the  parties  hereto  as  follows- 
Article  1.  The  corporation  agrees  to  issue,  on  behalf  of  the  Imperial  Chinese 
5r^^SS"  '  ^fiJ^^l^^S  ^^^^  (hereinafter  referred  to  as  "the  loan")  for  the  amount  of 
Cn^^Ju  1  ^"""f  i^""^  conditions  hereinafter  contained.  Imperial  Chinese 
^w^S  xii  r  o^f  ^^  "^"^^  ^?  the  entire  amount,  similar  to  the  bonds  of  the 
?Wn  ;Lim'''^  Railway,  with  the  raUway  m  firet  mortgage  security  therefor. 
The  loan  shall  be  m  one  issue,  and  the  price  agreed  upon  is  94  per  cent  of  the  nominal 
value,  subject  to  the  other  provisions  of  this  article  as  hereinafter  stated.  The  interest 
on  the  bonds  shall  be  at  the  rate  of  5  per  cent  per  annum  on  their  nominal  value, 
myable  half-yearly  on  the  first  day  of  June  and  the  firat  day  of  December,  and  shall 
be  calculated  from  the  date  of  their  sale  to  the  public 

K„T^f  iTl '  Yl  ^^,^^ed  ^0  the  public  as  soon  as  possible  after  signing  this  agreement 
but  if  at  the  date  of  signature  thereof,  owuig  to  an  unfavourable  state  of  thi  market 
rendering  the  issue  of  the  loan  and  the  payment  of  its  proceeds  to  the  Viceroy  of  Canton 
impossible  on  the  terms  above  named,  then  in  such  case  the  corporation  shaU  there- 
after, at  such  tune  as  the  Chinese  Government  may  decide  within  a  period  not  exceed- 
ing eight  months,  issue  the  loan  and  pay  the  proceeds  thereof  to  the  Viceroy,  deducting 
and  retaining  six  pointa  from  the  rate  at  which  the  loan  is  actually  issued  to  the  public 
v(hatever  that  rate  may  be  (that  is,  if  the  issue  price  be  101  the  Viceroy  will  deceive 
95,  and  so  on).  -^ 

Subject  to  the  provisions  of  article  16,  the  duration  of  the  loan  is  fixed  at  30  yeara 
commencing  from  the  date  of  the  signature  of  this  agreement,  but  no  interest  shall 
be  paid  on  any  bonds  which  may  be  redeemed  or  cancelled  under  the  terms  herein- 
after mentioned  after  the  redemption  or  cancellation  thereof. 

On  the  face  of  each  of  these  bonds  shall  be  expressed  the  value  thereof  in  the  sum 
of  £100,  or  in  such  different  amounts  as  the  Chinese  Minister  in  London  in  consultation 
with  the  corporation  may  sanction. 

It  is  understood  that  the  Chinese  Government  may  hereafter,  in  its  discretion, 
appoint  a  director  general  of  the  railway  upon  whom,  in  such  case,  will  devolve  all 
the  powers,  functions,  and  responsibiUty  herein  attributed  to  the  Viceroy  of  Canton 
vnereinafter  called  the  Viceroy). 

Art.  2  The  proceeds  of  the  loan  are  to  be  used  in  the  construction  and  equipment 
Of  the  railway,  and  in  paying  interest  on  the  loan  during  the  course  of  construction. 

2m 


300' 


BAILWAY  MATERIALS,  EQUIPMENT,  AHD  SUPPUES, 


Tfce  railway,  being'  the  first  mortgage  iecurity  for  !,he  loan,  shall  be  built  anil 
'isqiiippecl  imder  the  direction,,  of  the  Vireroy,  in,  acrordance  ivith  the  provieionfl  of 
•jtide  6  hereinafter,  and  shall  be  built  as  economically  ae^  poaiible  in  accordance  with 
tie  beit  modem  syBtem.,. 

It  is  iindentood  that  th^  Viceroy  wi,ll  secure  all  the  necessary  land  for  the  railway, 
and  will  gim  the  nece8sa,ry  inetructions  to  expedi,te  and  facilitate  the  work  of  con- 
,Btriicti,on.  The  railway  nifl  be  built  in  the  (iret  ins'tance  m  a  single  line,  but  provision 
wi„ll  be  made,  with  the  approTal  of  the  Viceroy,  and  wherever  necessary 'to  meet 
traffic  rec|uiremen,t8,  for  the  eventual  conBtruction  of  a  double  line. 

,If,,  dunng  the  time  of  construction,  the  proceeds  of  the  loan,  togeth«  with  the 
accrued  interest  thereon,,  'payable  by  the  corponitioii,  should,  after  the  deduction 
of  the  sums  neceesary  'for  the  'payments  of  intereit  m  the  loan,  be  insufficient  to 
complete  the  ■confltruction,  of  'the  railway,  the  amount  of  the  defici,ency  shall  either 
be  'provideii  from,  'the  Chineie'  Govern'ment's  own  resourcefl  or  by  a  iupplementary 
hmii,  to  be  hereafter  ismed  by  the  corporation,  the  interest  and  other  conditions  of 
which  fiupplementar}'  loan  shall  be  arranged  when  'the  time  arrives,  having  due  regard 
'to  'the  cottd'itions  of  the  money  market. 

ITien  the  railway  ie  complete,  if  there  is  a  surplus  from  the  sale  of  bonds,  the  said 
«rplus  shall  be  at  the  disposal  of  the  Chinese  Government^  either  to  redeem  the 
bonds  m  accordance  mth  the  t«niiB  of  this  •oeement  m^  ,hereinafter  stated,  or  to  be 
placwl  on  deposit  with  the  Hongkong  &  Shanghai  Bttikiiig  Corporation  for  the  purpose 
of  paying  interest  on  the  loan,  or  for  other  'purposes  beneficial  to  the  railway,  in  regard 
to  which  the  \lceroy  'will  com,m,unicate  in  d'ue  course  with  the  corporation. 

,in  all  matters  relating  to'llie  construction  of  'the  fmlwm  it  is  expressly  agreed  that 
'particular  heed,  shall  be  paid  to  the  opinions  and  habite  of  the  Chinese  people;  and  that 
'When  'practicable,  Chinese  ,»h,all  he  employed  'in  po8i,tionfi  of  tru.^t  and  responsibility 
111,^  connec'tion  with  the  railway. 

In  'regard  to  ^earthwork,  or  such  other  work  as  Chinese  are  com'petent  -'to  perform 
■contracts  shall  be  entered  into  for  such  'Work  wi,th  Chinese,  under  file  sanction  of  the 
head  office,  and  the  'Work  itself  shall  be  carri,ed  out  in  accordance  with  plans,  and  speci- 
ications  of  'the  engineer  in  chief  and  under  his  su'pef¥Mon, 

.Detailed  plans'  'and  es'timates  of  cost,  whether  of  'tie  respective  sections  of  the  rail- 
way,, or  of  auv  alterations,  of  the  same,  are  to  lie  submitted  for  the  approval  of  the 
Viceroy,,  by  'the  engineer  in  chief  through  the  managing  director. 
^  Art.  3.  The  loan  shall  'be  secured,  by  mortgage  declared  to  be  now  entered  into 
m  equjiy  l»y  virtue  of  this  agreemeat,  and  shall,  as  soon  m  possiWe  hereafter,  be  secured 
by  a  Bi3eci„fic  .and  legal  first  'mortijage  in  iiviinr'  of  'the  corporation  upon  all  lands 
,iaat«rial8,,  rolling  stwk,  buildings,  property,  and  premises  of  every  description  pur- 
chased or  to  be  ptifchaaed  for  the  railway,  and  on  the  railwav  itself,  as  and  when 
.constructed,  and  on  'the  revenue  of  ali'ieucri'ptio'ns  derivable  'tlierefrom. 

The  provisions,  of  thia^  art.icle  in  respect  of  the  mor%age  are  to  be  construed  and 
'treated  'i«  _e<|;ui'valen,t  in  pur|>ort  and  effect  'to  a  mortfage  customarilv  executed  and 
delivered  m  Eng,land  to  a  'trustee  ,for  the  purpose  of  securing  loans  and  'bond  issues 
■upon  railway  properties  in  foreign  cO'Untries. 

,A'8'T.  4.  It  18  ,hereby  agrc^ed  'that  in  six  ,moEths  .after  this  agreement  is  signed,  the 
corporation  sha,ll  provide  'the  .amount  n:e€e8i«ry  'to  proceed  with  the  deta^iled  survey 
#f  'the  railway,,  .and  for  prelimi,nary  construction  work  if  necessary,  whether  thw 
amount  .comes  from  the  mle  or  h,ypothecation  of  the  Iwnds,  or  from  advances  made, 
prci'vidwl  that  kmde  for  the  requ,ired  a,mo'unt  shall  have  been  executwl  and  delivered 
tO'  the  .corporation.  If,  aft«r  expiration  of  eight  months  from  the  date  of  the  ratilica- 
'tion  hereof,  the  work  of  coMtruction  shall  not  have  been  liegun  on  the  railway,  this 
.agreement  ,18  to  liecome  null  and  void,  but  if  failure  to'  commence  construction  be  due 
to  any  cause  of  force  m,ajeure,  a  'reasonable  exten8io.n  of  tMs  time  limit  shall  be 
.arra,nged  bet'ween  the  Viceroy  and  the  corporation. 

Of  the  'proceeds  realized  from  the  sale  of  'the  'bonds,,  after  deducting'  ,bo  much  of 
them  .as  may  be  required,  to  'he  kept  in  England  for  the  p'urchase  of  materials  and  the 
pawnentfl.  of  contracts  'there,  or  for  repayment  of  ad'vance,  such  amount.^  as  may  he 
eBtima.ted  and  certi,fi,ed  to  by  the  engineer  in  chief  'to  'the  Viceroy  through  the  man- 
aging d,n».c'tor,  as  being  act'uali  v  ,re<:iu,ired  ,for  the  co,nstruction  of  any  particular  section 
■of  the  railway,  m,ay  b©  ordered  by  the  Viceroy,  after  consideration,  to  be  transferred 
to  Hongkong  to  be  kept  in  the  Hongkong  4  Shanghai  Bank,  and  pkced  to  the  credit 
of  tie  instruction  account  of  the  railway  for  the  exclusive  purpose  of  constructing 
the  railway  m  the  manner  herein  provided  for  under  the  supervision  of  the  head 
o&ce  and  the  Viceroy. 

On  each  occ.afli,on  of  a  remittance  being  made  to  China.,,  'the  amount  realized  in 
■ycee  will  be  re^ported  'to  the  Viceroy,  and  mj  portion  whi,ch  :ttiay  not  be  required 
shill  be  placed  at  interest.  Similarly,  the  balance  in  Encland  sliall  be  placed  at 
Mi'tereat,  to^  be  allowed  at  'the  usual.  ,iata. 


APPENBIXBa 


801 


tfllSi^r^'^X^^ ^^AuTZ  «I^^*/'o^.t™e  to  time  in  England,  and  of  the  money 
ti^B^hLu^^^^  ^or  use  in  China,  a.^ 

tion  of  tho  Wiiwnm,  ./^  f  ""«"«?"  omce  for  report  to  the  Viceroy  for  the  infonna- 
lCr<l  of  romm  3  Un»  /"  ^  {"!^^^'-  '^^^  ^  *«  ^oard  of  Itevenue,  and  the 
anTsigned  bTwrn  ■       '^"'^  *^""^"''  ^"^^  «"'^'*  «^""'«  ^^^^  ^'^  «PP™ve<l 

th^Chin^eiMfitTond™  ."rfh  ^^^*»^.^^  "PO"  l>y  the  Viceroy  or  by 
Mture  of Tus  ^mlt  w  if  \  *e  forporation,  as  soon  as  possible  after  the  sig- 
uuiun,  01  ims  agreement,  but  if,  hereafter,  the  monev  markets  in  Ivindnn  nr  nfhSr 
countries  require  any  modiBcation  of  the  form  of  the  Wd  ex?eit  in  anvthfL  W 
affecte  the  amount  of  the  loan  and  the  liability  of  theChi'n^  ^Jver^^en^^S 
^.b^  m™^  '*"'^¥'*.  "i^K'^''^  »^ht  modifications  may  be^TtoSSt?he  views 
in  *  nZ    '^  ""•"*"  ^^  ^^  corporation  in  consultation  with  the  Ch?^  MiS 

the  a^p^i'^oTtirWdwup!;'  "P"'*^''  "*  ""^  ^y  **«  ^^'^^o"  ^  *«  Viceroy  for 
The  bonds  are  to  be  engraved  entirely  in  the  English  langnace  and  shall  I>Pi.r  tbo 
facsimJe  of  the  s^nature  of  the  Vicem^  and  of  hisleal  of  offi^  in  ""  diswSl 
with  the  necesfflty  of  signing  them  all  in  person,  but  the  Chines^  MiSr  in  iXC 
rf  hL  Su^ata  Sla^.h'"''''''  P"' tis'seal  upon  each  lbon"h  a  fSle 
a„daTu^nX^CMne^'Gi™"enr'  "^^  "'  "^  "^"^  '^  <"^^  ""^''"^^ 

are^to'b^~rv'"e^v!S'^nllr,r'"*'^^y'-  <^^!'^J^y  bo-^s  as  may  be  needed 
Zl  „»i   frP^u*^  ?,??^^™  "Oder  the  supervision  of  the  corporation,  and  after  thev 

Zn^i'^  b^''tfi"^^rS'*'  '"  ^"•^"'  •"  •'^-'"'"^  P«.vided'."rt:*'^ 

by^he^'l^mtion.'''*  engraving,  safe  deposit,  and  sale  of  the  bonds  are  to  be  borne 

a  he^'  offiS'arCand^'tSn^f ""." '^I  ^  ^'^^'  ^^  ^''^">y  ^  ^»^^ 

^rn'l7*T?r  Briti^  erf""'  "i^'S'^''  -'^4'^^^'-  -d^Bjul^cWel 
accountant,     inese  Bntish  employees  shall  be  proposed  and  certified  as  comm.tenf 

for  t-heu'  posts   by  the  corporation,  and. shall  hi  approved  by  the  Vic^oy  Tthe^ 

HiSd'^thXfr^r^^^^  ^  '^^-  n^-^'he  shall  r^est  t^ c^^p^'^'ti^^^ 

TO  aispensewitn  their  ser^-ices  and  to  nominate  their  successors,  and  in  the  event  of 

^th  "tff  V  J^Z^T^  '^  Tr'  fr  K^"^"^  ^'^"«^'  it  shall'dol'  in  coLu  S^^^on 
with  the  Viceroy.    It  is  understood  that  the  Hi]fi*.fl  r.oi^«^^^  k,,  +i,^.„  ^_i  . 


!l^l^!.JA^^5!»>J_.l^  i«  ^^deratood^that  the  dut^e^perfoi^i^erbylh:^^^^ 

interests  of  the  Chinese  Government  and' the 


are  intended  to  promote  the  mutual  xxiu.n.«i«  «i  me  ^.ninese  Uovernment  and  tho 
bondholders  respectively,  and  it  is  therefore  agreed  that  all  ^ses^ISSce  a^  n^ 
therefrom  shall  be  referred  for  amicable  adj^tment  l^etween  the  vSv  and^thf 
representative  of  the  corporation.  The  salaries  and  other  terms  of  a^mlm  of  Se 
engineer  in  c^ef  and  the  chief  accountant  shall  be  proposed  by  the  wSion  for 
approval  by  the  Viceroy;  and  the  amount  of  their  salar Wtc  f  s^U  Kfd  o^^ 
the  general  accounts  of  the  railway.  '        '  ^®  P^^^  °"^  *" 

For  all  important  technical  appointments  on  the  railway  staff   Euroneans  nf  p^ 
penence  and  ability  shall  be  engaged,  and  wherever  competLt  Chinli^re  avaiJahl^^ 
they  shall  also  be  employed. .  Alf  such  appointments  sl^l  be  ma^  Ind  tS  W^ 

LTshill  ^eib^  tedTr'tt^^^^^^^  ^^^  '"T  ^.'^^T^'  '^  Stie^ircoStioi" 

1^  ♦^^  ill    ?  T^  ^^  ^**®  Viceroy's  approval;  similar  procedure  shaU  be  followed 

e  W  of Xli^'nS^f  employed  in  tL  chief  accountant's  department  In^he 
SLy  be  d  ™S^^^  ^^^"P^^^  employees,  their  s^nd^s 

iTnh^f  a^  ^^}.  I  ^"^  nianagma;  du^ctor,  after  consultation  with  the  engineer 
m  chief,  and  subject  to  the  sanction  of  the  Viceroy.  The  form  of  LreemLte  msS 
with  European  employees  shall  conform  to  the  usuil  practice  ^'^'^^''^  ''^^ 

The  accounts  of  the  receipts  and  the  disbursements  of  the  railway's  constnirfinT,  «n^ 
operation,  shall  be  kept  in  Chinese  and  English  in  the  Deo^tmenf  nf  tho^f  o  . 

ant  whose  duty  it  shall  be  to.organize  aSI  suZ'^tir^^^^ 
for  the  information  of  the  Viceroy  through  the  mana^n^  Hir*w/i  ^^^f /iT 
^T^?^    All  receipts,  and  paymen^  Xll  be  e^S  b^^^^ 
and  authonzed  by  the  mana^ng  direct;)r.  ^  accountant 

For  the  general  technical  staff  of  the  railway  the  necessary  arranffemAT,t«  alkali  k« 

^i^^£^,^^p!LZ'ti  x^rr^i  i%fnS'?u*pe^irrrS} 


u 


302 


KAILWAY  MATERIAIiS,  KQUIPMENT,  AND  SUPPLIBS* 


m  through  the  numaging  cliructor,  ■md  ihall  always  comply  therewith,,  haying  at  the 
iHime  time  due  regaid  tii""tlie  efficient  conatniction  and  maintenance  of  the  railwav. 

A  whool  for  'the  education  of  Chineee  in  railway  mattara'  ehall  be  cetablifihea  by 
the  .managing'  director,  mibject  to  'the  aoproYal  of  tne  Viceroy." 

Airr.  7.  ¥nder  the  proTiwoiii  of  'article  8  of  thii  agreement  'the  properties  covered 
by  the  'fi:rst  mortgage  securitjr  hereby  creatc»d  include  the  railway,  its  property  and 
eqiiipm-ent,  and  'the  mortgage  ia  to  be'executed  by  a  deed  in  the  form  contemplated  by 
the  said  article.  ^^  But  iiibfect  to^  the  guaranty  and  mort|?ige  thus  pfivon  by  the  Chineae 
'Govemmeiit,  it  'is  hiireby  dedarwi  'that  'this  railway  is  'in  fact  a  Chinese  property. 

All  land  that  may  be  required  along  the  whole  course  of  the  railway  within  survey 
limits,  and  lor  'the  necessary^  sidings,  stations,  repairing  shops  and  car  sheds,  to  be 

Erovided  for  in  acoofiian,ce  wi'th  the  detailed  plans  now  made,  or  hereafter  to  be  made 
y  'the  engineer  in  chief,  and  approved  'bv  the  Viceroy,  shall  be  acquired  by  tlie 
Viceroy  at""  the  actual  cost  of  the  land,  a'ni3  shall  be  paid  for  out  of  the  proceeds  of 
(he  loan. 

The  'title  deeds  of  the  land  for  the  railway  and  all  other  lands  shall  be  free  from 
all  encumbmnces  and  entanglements  and  shall,  from  time  to  time,  as  soon  as  secured, 
be'  'ws^tenrf  in  the  name  of  the  railway. 

Notices  of  all  purchases  of  lands  for  the  railway  within  the  survey  limit  (together 
'wi.th  corresponding  title  deedi)  ape"to  'be  tranamittied  by  the  railway  head  offico  under 
'the  direc'tioii  of  th*  Vicerov  to  the  local  aeent  of  the  corporation  for  record  and  pro«^or- 
'vation  in  its  oMce  in  Hongk'ong,  and  for  the  purpose  of  eitablishing  the  first  mortgage 
leecurity  nn'til  the  time  when  the  same  are  to  be  returned  to  the  viceroy,  as  herein- 
■after  in  this  article  mrovidcxl,. 

Ail  lands,  the  title  deeds  of  m-hich  are  lodged  with  the  corporation  as  part  of  tho 
first  mortgage  security  of  'the  loan,  shall  not  be  dispoeed  of  in  any  way  by  nire,  lease, 
or  .sale,  'to  any  party,  for  any  purpose  whatsoever,  'without  the  written  consent  of  the 
Viceroy,  except  only  in  'the  event  of  the  Imperial  Chinese  Government  failing  to 
'pay  the  'interest  or  principal  of  the  bonds,  and  then,  in  .accord^ance  with  the  powers 
m  the  d«fld  of'  mortgage. 

The  lands  thus  Iwught  shall  be  free  from  all  encumbrances,  liabilities,  and  entangle- 
ments, and  shall  be  conveyed  by  full  and  sufficient  deeds  of  assignment  according  to 
Chinese  law,  all  of  which  "are  to  be  kept  and  recorded  in  the  Hongkong  office  of  the 
'CorpoiEtion,  :aad  are  to  be'  held  by  it  as  a  itst  'Inortgiige  .■ecurity  for  the  bonds  under 
the  proviaiixis  of  this  agreement,  until  such  time  as  principal  and  interest  of  the 
iMmas,  together  with  aU  indebtedness,  shall  have  been  paid  off,  when  the  same  shall 
then  be  retumed  to  the  Viceroy,  except  only  in  the  case  of  the  Imperial  Chineae 
Goveiament's  faili»e  to  pay  the  interest  or  principal  of  the  bonds  and  consequent 
nalizalia&  uid'Cr  the  powers  of  the  mortgage  security. 

For  the  proper  protection  of  the  first  mortgage  security  the  Chinese  Government 
QBclertiikes  that  until  the  bonds  shall  have  been  redeemed,  no  part  of  the  lands  com- 
prised in  the  mortgage  security  or  the  railwa]f  with  its  appiui^enances  shall  be  trans- 
ferred 'Or  given  to  another  party,  or  shall  'be.  injured,  and  that  the  rights  of  the  first 
mortgage  uiall  not  be  in  any  way  impaired,  unless  with  the  consent  in  writing  of  the 
corporation,  which  shall  only  be  given  if  in  the  opinion  of  the  corporation  the  interests 
of  the  'bondholders  will  not  be  afilec^ted.. 

And  further,  that  until  the  interest  and  principal  of  the  loan  and  all  the  indebted- 
ness shall  have  been  paid  off,  or  unless  with  the  express  consent  in  writing  of  the 
corporation,  the  Chinese  Government  or  the  Viceroy  shall  not  again  mortgage  the 
abo'Ve  properties  to  another  party  whether  Chinese  or  foreign. 

During  the  period  of  this  agreement  no  special  taxes  shall  be  levied  by  the  Chinese 
Govemnttent  on  the  railway,  its  appurtenances,  or  earnings;  but  all  taxes  at  present 
payable,  such  as  land  tax,  as  well  as  any  taxes  which  the  Chinese  Government  may 
^nereafter  institute,  such  as  ilamp  duty,  etC'.,  and  which  may  be  applicable  generally 
'to  all  co'mmereial  transactions'  in  'China,  shall  also  apply  in  the  case  of  the  railway 
:ind  its.  operations. 

Art.  8.  It  is  agreed  that  if  the  half-yearly  interest  on  the  bonds  is  not  paid  on  any 
due  date  thereof,  or  if  the  principal  of  the  loan  be  not  paid  in  accordance  with  the 
tinortiiation  schedule  hereto  at  Jhed,  the  whole  railway  with  all  its  appurtenances 
horein  mortgaged  to  the  corporation  for  the  bondholders,  shall  be  handed  over  to 
the  corporation  to  be  dealt  with  bv  it  according  to  law  in  such  manner  as  will  insure 
the  proper  protection  of  the  interests  of  the  bondholders,  provided,  however,  that 
if  the  failure  to  make  payment  at  any  one  date  be  due  to  causes  beyond  the  con- 
trol of  the  Chinese  Govemm'ent,  and  if  the  ViC'eroy  re^quest  the  corporation  to  i>ost- 
pone  the  taking  over  of  the  railway  for  a  reasonable  period  of  grace,  the  question 
shall  be  amicably  discussed  and  decided  between  'the  Viceroy  and  the  representa- 
live  of  the  corporation.    When  the  whole  loan  and  the  interest  due  thereon  and  all  ^ 


APPENDIXES. 


tj^Jo 


the  indebtcdnpfls  shall  have  been  paid  off,  the  railway  with  all  its  appurtenances  in 
good  working  condition  shall  revert  to  the  possession  and  management  of  the  Chines? 
Government  according  to  the  provisions  of  this  agreement. 

Art.  9.  As  remimemtifxi  for  all  services  rendered  by  the  corporation  during  con- 
slroction  of  the  railway,  the  corporation  shall  receive  the  sum  of  £35,000,  half  of 
which  shall  be  paid  when  the  construction  work  is  half  completed,  but  not  later 
than  18  nonths  after  commencement  of  construction,  and  the  other  half  upon  com- 
lietion  of  the  line.  This  amount  shall  be  regarded  as  a  commutation  of  all  cora- 
missions  to  which  the  corporation  and  its  agents  would  properly  be  entitled,  and  of 
payments  of  all  services  rendered  in  the  constmction  equipment  of  the  railway,  in 
respect  of  th«  present  loan;  but  in  the  event  of  any  branch  lines  being  derided  upon 
by  the  Chinese  Government  for  construction  in  connection  with  this  railway,  and 
if  the  Chinese  Government  decide  to  build  the  same  by  issue  of  a  foreign  loan  and 
not  from  its  own  resources,  then  the  corporation  shall  have  the  first  option  of  tendering 
for  such  loan,  and  a  further  payment,  proportionate  to  the  amount  of  such  supple- 
mentary loan,  and  calculated  at  the  same  rate  as  the  commutation  hereinabove  men- 
tioned, siiall  be  made  to  the  corporation  as  commutation  of  its  commission  for  all 
wrvicee  in  respect  of  construction. 

in  return  for  this  conmauted  commission,  the  Viceroy  is  entitled  to  require  the  ror- 
poiation  to  superintend  the  purchase  of  all  materials  required  for  the  construction 
and  equipment  of  the  railway,  which  shall  be  purchased  in  the  open  market  at  the 
lowest  rate  obtainable,  it  being  understood  that  all  such  materials  shall  be  of  good  and 
satisfactory  quality.  At  equal  rates  and  qualities,  goods  of  British  manufacture  shall 
be  given  preference  over  other  goods  oi  foreign  origin.  Invoices  and  in8pector*3  cer- 
tificates are  to  be  submitted  to  the  Viceroy. 

With  a  view  to  encouraging  Chinese  industries,  Chinese  Government  and  other 
materials  are  to  be  prelefred,  provided  price  and  quaUty  are  suitable. 

No  commission  shall  be  allowed  to  the  corporation  on  the  purchase  of  materials 
except  as  above  provided.  All  trade  discounts  or  rebates  if  any,  are,  during  con- 
struction, to  go  to  the  construction  account,  and  after  completion,  to  the  credit  of  the 
railway. 

Art.  10.  In  the  construction  ol  the  line,  in  the  working  of  the  railway,  and  in  the 
perfwmance  of  the  difcrent  kinds  of  business  connected  with  the  railway^  no  inter- 
ference or  obstruction  by  Chinese  or  foreigners  will  be  permitted.  The  Chinese  Gov- 
ernment will  provide  protecticm  lor  the  railway  while  under  construction  or  when  in 
operation,  and  all  the  properties  of  the  railway,  as  well  as  Chinese  and  foreigners 
employed  thereoa,  are  to  enjoy  the  utmost  protectic«i  from  the  local  officials. 

The  railway  may  maiiLtain  a  force  of  Chinese  police  with  Chinese  officers,  their 
wages  and  maintenance  to  be  wholly  defrayed  as  part  of  the  cost  of  the  construction 
and  maintenance  of  the  railway.  In  the  event  of  the  railway  requiring  fiu-ther  protec- 
tion by  the  military  ftwrces  of  the  Imperial  or  provincial  Governments,  the  same  will 
be  duly  applied  for  by  the  head  office  and  promptly  afforded,  it  being  understood 
that  such  military  forces  shall  be  maintained  at  the  expense  of  the  Government 
or  the  province. 

Akt.  11.  All  receipts  and  earnings  of  the  railway  shall  be  regularly  paid  into  the 
railway's  account  with  the  Hongkong  &  Shanghai  Banking  Corporation,  and  on  such 
funds,  whether  on  daily  balance  or  on  fixed  deposit,  the  bank's  usual  rate  of  interest 
shall  be  allowed. 

All  expenses  of  working  and  maintaining  the  line  shall  be  paid  from  the  receipts 
and  earnings,  and  any  remainder  thereof  shall  be  charged  with  the  service  of  the  loan. 
If,  after  payment  of  these  expenses,  and  making  due  provision  for  pajTuent  of  interest  at 
5  per  cent  per  annum  on  the  bonds,  and  for  repayments  of  principal  due  in  accordance 
with  the  amcHtization  schedule  hereto  attached,  there  remain  surplus  funds  unappro- 
priated and  properly  available  for  other  purposes,  such  funds  shall  be  at  the  disposal 
of  the  Chinese  Government  to  be  used  in  such  manner  as  the  Viceroy  may  decide, 
provided  always  that  after  completion  and  opening  of  the  line  to  traffic  the  amount 
sufficient  for  regular  payments  of  interest  and  repayments  of  principal  shall  be  de- 
ducted from  such  siuplua  funds,  if  any,  and  ehall  be  deposited  with  the  Hongkong  & 
Shanghai  Banking  CarpcHution  six  months  before  the  aate  at  which  such  payments 
faU  due. 

In  the  event  of  there  being  no  surplus  funds  available  as  aforesaid  from  the  earnings 
of  the  railway,  the  amount  required  for  payments  of  interest  and  repayments  of  prin- 
cipal sliall  be  provided  in  accoixiance  with  the  conditions  of  article  14  hereinafter. 

Art.  12.  The  corporation  are  hereby  appointed  trustees  for  the  bondholders,  and 
in  any  future  negotiations  respecting  these  loans^  or  matters  arising  in  connection 


304  .RAII-WAY  MATEBIAM,  EQtTIPMEFT,  ABB  SUPFUW. 

tlierewitli,  wtieh,  may  take  place  between  the  Vireroy  and  the  corporation,  the  eor- 
poratioii  shall  be  taken  ai'  repreneDting  the  bondholdem,  and  m  such,  enajMWwed  to 
act  on  their  behalf.  In  view  of  the  fact  that  the  corpomtion'e  iwponfflbility  to  the 
bondholdere  contimieB  after  c onetruction,  whereas,  m  eiated  in  article  9,  its  commuted 
commiaiion  for  acmces  rendered,  ii  limited  to  the  period  of  conrtniction,  and  the  cor- 
poration is  not  therennder  entitled  U  any  hirthcr  remuneration  dunng  the  penod  of 
the  loan,  the  corporation  shall  recetife  aa^  wmuieration  for  its  eervices  and  respon- 
sibility in  acting  M.  trustees  for  the  hondhcilders,  the  sum  of  £1,000  per  awium,  such 
r*?m.iineration  to  commence  from  the  date  of  iwue  of  this  loan  and  to  terminate  upon. 
its  complete  redemption. 

Ab.t,  U.  All  materials  of  any  kind  that  arfe  reijuired  for  the  coiM*rii.ction  and  work- 
ing of  the  railway,  whether  imjwrted  ftom  abroad,  or  from  the  prownces^  to  the  scene 
of  the  work,  shall  he  exempted  ftom  likin  so  long  as.  fli.ich  exemption  remaiM  in  force 
in,  respect  of  other  Chinese'  rai,lway8.  The  bonds  of  this  loan,  twther  with  their 
coupons  and  the  income  of  the  railway,  shall  be  free  from  imposts  of  any  kind  by  the 
Ctovemment  of  China, 

Abt.  1.4..  It  is  agredl.  that  during  the  time  of  the  construction  of  the  railway,  the 
intoiest  on  the  'bonds  and  on  any  advances  made  by  the  corporation  is  to  he  paid  from 
the  proceeds  of  the  loan.  The  accruing  iiftereet  from  any  proceeds  of  the  loan  not 
used  'during  the  period  of  constractiai,  :and  'the  eaminp.  deeved  by  the  thineae  Gov- 
ernment from  the  working  of  any  •ections  of  the  i»ilway  ai  they  are  built,  are  to  bo 
ised  to  make  up  the  amount  required  for  the  payment  of  the  said  interest,  and  If  any 
deficiency  remains  it  is  to  he  met  from  the  proceeds  of  the  loan. 

When  liie  construction  of  the  railway  is  wholly  completed,  the  interest  on  the  bonds 
is  to  be  paid,  from  the  income  or  earniop  of  the  railway  receued  by  the  Chinese 
Government,  every  half  year  on  the  first  day  of  June  and  the  first  day  of  December. 

It  is  hereby  agreed  that  the  amount  rwiuiifed  for  the  payment  of  interest  and  the 
repayment  of  principal,  toigether  with  a  som  of  one-quarter  of  1  per  cent  on  such 
amounts,  to  cover  commission  to  the  Hongkong  A  Shanghai  Banking  Corporation, 
who  are  hereby  appointed,  agents  for  the  entire  service  of  repayi.ng  the  loan,  shall  be 
paid  to  them  14  days  before  the  due  dates  in  Hongkong  or  i^  Canton  (at  the  option  of 
the  Vicerov  when  settling  exchange)  in  local  currency  sufficient  to  meet  such  pay- 
ments in  sterling  in  London,  exchange  for  which  shall  be  settled  with  the  Hongkong  & 
Shanghai  Banking  Corpofation,  the  Viceroy  having  the  option  of  seMing  exchange 
at  any  date  or  dates  within  six  months  previous  to  any  due  date  for  the  repayment  oi 

interest,  and  pri.ncipaL.  ,  ,      ,  .        ^ 

The  Chinese  Govenunent  unconditionally  undertakes,  and  hereby  promises,  to 

pay  the  principal  of  the  loan  and  the  interest  on  the  loan  on  the^due  dates  fixed  there- 
for.   If, '  at  any  time,  the  earnings  of  the  .railway,  together  with  funds  available  from 

the  proceeds  of  the  loan,  are  not  suflicient  to  m«t  the  interest  on  the  bonds  and  the 
repayment  of  capital,  in  accoidance  with  the  .amurtliatioa  schedule  hereto  attac-hed, 
the  'Viceroy  shal.!  devi,se  means  for  supplying  the^  deficiency,  and  should  his  inability 
to  do  so  appear  probable,  he  shall  memoriali«e  the  Govenment  to  take  measures  to 
make  up  the  deficiency  from  other  sources,  and  thus  be  tmdf  to  pay  off  the  indebted- 
ness,, so  that  the  required,  amount  may  be  placed  in  each,  cam  at  1^^14  days  previous 
to.  the  due  dates  of  such  payments,  in  the  hands  of  the'  Hongkong  &  Shanghai  Ban.ki,ng 

Corponition..  ,  j  •       ■* 

AiT.  15.  The  corporation  may,  subiect  to  all  ita  obligations,  tranrfer  or  delegate 
.all  or  any  of  it.e  rights,  powers,  and  discretions  to  its,  wcceasors  or  assigns,  but  the 
corporation,  which  is  a  corporation  formed  under  Bngiih  kw,  shall  not  transfer  ita 
rights  under  this  agreement  to  any  other  nation,  or  people  of  any  other  nationahty, 
except  British  or  Chinese.  Similarly,  the  Chinese  Government's  nghts  imd  authonty 
under  this  agreement  shall  not  be  transferred  to  persons  of  other  nationality. 

It  is  further  understood  that  the  Chinese  Government  will  not  build  another  h.n0 
competing  with  thi.s  railway  to  its  detriment.  ,    „  ,    „^  t> 

Aet.  1*5.  The  term  of  the  loan,  as  stated  in  article  1,  shall  be  30  years.  Kepaynient 
of  principal  shall  commence  alter  the  expiry  of  12*  years  from  the  date  of  the  1^ 
and  ahalfbe  completed  in  17i  years  by  yearly  paymente  to  the  Hongkong  &  Shanghai 
Banking  Corporation  as  agente  for  the  service  of  the  loan,  acting  for  the  corporation 
under  the  terms  of  this  agreement,  in  accordance  with  the  amortization  schedule 

If,  at  any  time  after  the  expiry  of  121  years  from  the  date  of  the  loan,  the  Imperial 
Chinese  Government  ahould  wiih  to  redeem  the  outstanding  amount  of  the  loan,  or 
any  portion  of  it,  not  yet  due  under  the  provisions  of  the  amortization  schedule  hereto 
attaclied,  not  less  than  six  months'  notice  shall  be  given  in  writing  by  the  Viceroy 

«  AiMrtitaltaD.  scliedulc  u  omittod  hem. 


APPENDIXES. 


805 


to  the  representative  of  the  corporation,  declaring  the  number  of  additional  bonds 
so  required  to  l)e  redeemed,  whereupon  the  representative  of  the  corporation  shall 
immediately  proceed  to  make  such  arrangements  as  may  be  necessary  and  usual 
for  the  redemption  of  the  number  of  bonds  specified,  which,  when  duly  redeemed 
after  payment  by  the  Imperial  Chinese  Government  of  the  proper  amount  due  thereon, 
shall  be  canceled  and  delivered  to  the  Viceroy. 

All  bonds  thus  redeemed,  in  excess  of  the  amount  specified  in  the  amortization 
schedule  hereto  attached,  before  the  expiry  of  25  years  from  the  date  of  the  loan, 
shall  be  paid  for  with  a  premium  of  2|  per  cent  over  their  face  value  (that  is,  £102.10 
will  be  required  to  pay  for  £100),  but  after  25  years  bonds  may  be  redeemed  over 
and  above  the  amounts  specilied  in  the  schedule  without  premium  upon  notice 
being  given  in  the  manner  above  specified. 

As  soon  as  the  loan  has  been  completely  redeemed,  this  agreement  shall  become 
null  and  void  and  the  mortgage  shall  be  canceled. 

Art.  17.  If,  during  construction,  any  proceeds  of  the  sale  of  the  bonds  are  lying 
unused  and  bearing  interest  on  their  deposit  whilst  the  construction  of  the  railway 
is  going  on,  such  interest  is  to  be  credited  to  the  general  account  of  the  railway  in 
order  that  the  railway  may  enjoy  the  full  advantJ^e  thereof. 

It  is  also  agreed  that,  if  the  corp<;)ration  shall  think  it  expedient  before  the  sale 
of  any  of  the  bonds  to  advance  any  money  for  the  work,  such  advances,  together 
with  the  interest  thereon  not  exceeding  a  charge  of  6  per  cent  per  annum,  shall  be 
deducted  from  the  proceeds  of  the  sale  of  the  bonds. 

Art.  18.  The  junction  of  the  sections  of  the  railway  from  Canton  to  the  boundary 
of  the  Kowloon  leased  territory  under  British  control,  and  from  the  said  boundary 
to  the  port  of  Kowloon  respectively,  and  the  subseouent  joint  working  of  the  two 
sections,  shall  be  arranged  by  agreement  between  the  Viceroy  of  Canton  and  the 
Governor  of  Hongkong. 

Art.  19.  This  agreement  is  signed  under  the  authority  of  an  imperial  edict  dated 
the  seventh  day  of  February,  1907,  which  has  been  officially  communicated  to  the 
British  Minister  in  Peking  by  the  Waiwupu. 

Art.  20.  This  agreement  is  executed  in  quintupUcate  in  English  and  Chinese, 
one  copy  to  be  retained  by  the  Viceroy,  one  by  the  Waiwupu,  one  bv  the  Board  of 
Communications,  one  by  the  British  Minister,  and  one  by  the  corporation,  and 
should  any  doubt  arise  as  to  the  interpretation  of  the  agreement  the  English  text 
shall  be  accepted  as  the  standard. 

Signed  at  Peking  by  the  contracting  parties  this  twenty-third  dav  of  the  first  month 
of  the  thirty-third  year  of  the  Emperor  Kuang  Hsu,  being  the  seventh  day  of  March, 
nineteen  hundred  and  seven. 

(Seal  and  signature  of  His  Excellency  Tang  Shao-yi,  representing  the  Waiwupu.) 

Witnessed  by — 

For  the  llritish  <&  Chinese  Corporation  (Ltd.): 


Witnessed  by— 

Jahdine  Mathesom  &  Co. 
The  Hongkong  &  Shanghai  Banking  Corporation: 


Joint  Agents: 

The  British  &  Chinesb  Gobtoration  (Lxd.)- 

10622©"— la 20 


J.  0.  P.  Bland. 


fi.  Gardner, 
Ading  AgenL 


VA 


ApfiiMb  1— IIENTSIN-PIIKOW  KAEWAY. 


This  igRMiiiiiit  n  imii»  si  'PbUng  on  fli«  'lOtli.  dtaF'  <if'  tli»  13th  Moon  of  the  33d 
jmr  of  Kimiig  Hmi,  corresponding  to  th©  13th  day  of  Jmmmtft  IwJS,  tnd  the  contract* 
lof  partiM'  aiii: 

His  Excellency  liang  Tun  Yen,  Acting'  Junior  Vice  Plwiien*  ol  the  Waiwupu, 
dttlj  aiithoriased:  to' act'  mi  behalf  of  the  Impeoal  Govemineiil  of  diina'  wi  the  one  part, 
and  (a)  the  BeiitKh-Aiiia'tische  Bank,  SlMgllaii  (b)  the  Chinsfi*'  Cential  Railway 
(litd.),  Ijondon, 'he»lii«fter  calM  'Tlie  Syndicate,  of  the  other  part. 

Ahticik  I.  The  Imperial  €iOTreniiii«nt  d  €hlna  anthorliei,  tbe  iwidicate  fcO'  i«:ujj  a 
5  p<'T  cent  gold  loas'  lor  an  anomil  ^of'  JIUjOOO^OOO.  The  lo«i  lUI  'be'  of  the  date  on 
which  th«  Intaeriea  of  hondB  kianiid to  aw  public  and  shall  be  called  the  ''Imperial 
■Chinese-  Ctowmiiwiit  Vhm  Bur  Oent  Bwiliin-Pukoir  .Railway  linan." 

Art.  II.  ^The  loan  is  designed  to-^'pufid^  cafiital  lor  'Hie  ewstnictiffli  of  a  eovem- 

lent  miliniy  tine'  'imn  a  'point  eomeeting'  vitii  Hie  Impeiial'  Railways  of  North 
dkiaa  at  or 'near  Tlenlisia'  'timigh  Tbiehow  and'  "MHiiiii  "ln-'Iiiin.  near'  the  southern 
frattti.er  of  Shantni^,  hsfeiliafler"  kiifywn  as  the  Mertheni'  Section  of  the  Tientsin- 
Piitow'  Railwaiy  Lme,  and  fmii/'lliiitii'  io-'a'ptint'at  oroear  'Pu.kiow  (opraite'  liking 
on  the  Yanfftae-kiang),  hereinafter  known  as^  'the  Southern  S^ectaoiii.  'iil  'Hie  Tientsin- 
Plilnnr  Raiimiy  Line.  The  total  lenfth  of  th.e«  two  .sectiooB*  htiag  about  l,08d 
'kiioEiKten,  e<|ual  to^  about  t,lW  'Ciiiiiff»'"..i.  The  survey  Mne'  shail  'be  open  tO'  revision 
by  the  director  general  of  the  railway. 

jixff.  'HI.  The'Capitd^  so^'pimiiiid^shall  b^^saW^'dtiroied  to  the' construction  of  the 
'niiiw»y"''li&e,  'in€^h]cnn|;'lie-'piithaie  of  laad|  ;raii!li|9:ftiiek,  and  other  equipment,  and 
to  the  'worUiig  of  the  Ine^'^and''  to  puniiiil^  of  interest  on  the  loan  dnrJoig  lie  pe.riod  of 

cciistnwtiaii,  'wiiichi'  'i>--iitiiiatfli'' at 'iMr  'years  fmni.  thte>  actual  beginning  of  the  worka, 

the  conmenceineBt  of  the  worke.  "not  to  'be  dekjred  iMyond  six  monthS'  after  this^ 
aipieiiieiit"  hat-  'lieeii  sipMi,  wilUiD-  'Ufaich  peftfid^  the  syndicate'  shall  notify  the 
difeeloff'  9tiifliiBl''"tii«t^  'the  sun.  of  X9it|.M0"  has'  'been  placed  'at  his..  diiixMii,  to  be  held 
in  Europe  or  remitted  to  €h..ina  m  he  may  direct,  as  a  firsi  iwitnUniemt  on  atoount  of 
the  'proceedS'"  of  the  lean.  13iis..«iioiint  of  1500^000,  or  niaitoirer  poffttBH  'thereof  is 
actually  advanced.,  'ti»etber  'wi:th  .interest  thereon  not  exceeding  a  chaige  of  6  per 
cent  per  anu'um.,  shall l>e  deducted,  from  the  proceeds  of  the  'first  sale  of  the  bonds. 

Abt.  'IY.  'The  rate  of  .interest  for  tht'  ^luaii'  itoil  he  &  pec'  cest^  'per  annum  ^on.  the 
nonniiial.  ptiaeipal.  and  ^shall  be  paid  to  the  bondholders  half-yearly.  The  said  in.'terest 
shall  be  calculated  from  the  date'  on  which  the  loan  'is  issued  to  'the  pithlic  and  shall 
be'  paid  by  the  Imperial  Oiiiiese  Qovemment  during-  the  time  of  Gonstruc'tioii.  eitlier 

from  the  proceeds  of  the  loan,  or  frost  other  ■HBOHi aad-altaniaiids,.  in-  the  Sist  plac!e, 

'O'ut  'Ol  'iM'  .ft!f:eiiae..'af  the  railway,  and  then,  from  nich  other  revenues  as^  'the  Chin  is  i 
CiO'¥<itBiiieiii^^::iiMy  think  fit  to  'Use  for  'the  purpose  in.  half-yearly  instaHmente  according 
't4>  the  amounts  specifi.ed  in  the  schedule  attached  to  this  .agreement,,  and  '14  da}  8 

before'  th'cir'  d'ue  da'tes,  Watem  'GaloKlar,  aa ealeulatod.  hal£-yeaiiy  .imni...  the  dftte  on 

'which,  the  loan  is  issued  to  the  public. 

Akt.  V.  'The  term  of  the  loan  shall  'be  90'  years'.  Repaym.ent  of  prin.cipai  aha'! I 
'Commence  after  the  expiry  of  10  years  .from  the  date  of  the  loan  and  except  as  provided 
in  article  VI  hereina.fter,  shall  'be  'made  by  /early  amortization  to  the  Deutsch-Asia- 
tise'he  .Bank  .and  'the  Hongkoiig  &  Shanghai  Banking  Corporation  in  half-vearly  in- 
stallments out  of  the  revenues^  of  the  line  or  such  other  revenue  as  the  Chinese  Go'V- 
ernment  may  thi,nk  fit  to'  'use  for  the  p'urpose,  according'  to  the  amount  specified  in 
the  schedule  attached,  to  th,i8  agrc'ement,  out  14  dap  bc'lore  their  due  date,  Western 
Calendar,  as  calculated  half-yearly,  from  the  date  on  which  the  loan  is  issued  to  the 
public. 

Art.  YI.  If  at  any  time  after  the  lapse  of  10  years  from  the  date  of  the  loan  the 
Imperial  Chinese  Government  should  desire  to  reoeem  the  whole  outstanding  amount 
'Of  'the  .loan,  or  an.y  ;part  of  it,  not  yet  due  :for  repayment  in  accordance  with  'the  schedule 
of  pepayments  'hereto  attachedj  it  may  do  so  until,,  the  twentieth  year,  by  payment  of 
a  premium  of  2|  per  cent  on  the  lace  value  of  the  bonds  (that  ia  to  say,  by  payment 


807 


of  £102  lOi.  for  each  £100  bond)  and  after  the  twentieth  yeaf  wiJ|ioiil  premium;  but 
in  each  and  every  case  of  such  extra  redemption,  the  Imperial  (Jimese  Government 
shall  five  six  months'  notice  in  writing  to  the  syndicate  and  such  redemption  shall 
b«  effected  by  additional  drawings  of  bonds,  to  take  place  on  the  date  of  an  ordinary 
drawing,  as  provide  for  in  the  prospectus  of  the  loan. 

Abt.  VII.  The  Deutsch-Afiiatische  Bank  and  the  Hongkong  &  Shanghai  Banking 
Corporation  having  been  M)pointed  by  the  German  and  Britiwi  parties  of  the  syndi- 
cate, respectively,  agents  for  the  service  of  the  loan,  the  half-vearly  pajTnents  due 
for  amortization  and  interest,  r^erred  to  in  articles  IV  and  V,  shall  be  made,  in 
accordance  with  the  amounts  of  the  schedule  attached  to  this  agreement,  ana  14 
days  before  their  due  dates  as  fixed  by  articles  IV  and  V,  to  tnese  banks  by  the  director 

feneral  of  the  railway,  who  shall  habd  to  said  banks  in  Shano^hai  or  Tientsin  14  days 
ef<»e  the  said  due  dates  in  shares  to  be  arranged  by  the  banks,  funds  in  Shanghai  or 
Tientsin  sycee  suflEicient  to  meet  such  payments  m  gold  in  Europe,  exchange  for 
which  shall  be  settled  with  the  said  baiiJcs  on  the  same  day,  the  Railway  Adminis- 
tration having,  however,  the  option  of  settling  exchange  with  the  two  banks  at  any 
date  or  dates  within  six  months  previous  to  any  due  date  for  the  repajTnent  of  interest 
and  principal.  These  payments  may,  however,  be  made  in  gold,  if  the  Imperial 
Chinese  Government  should  happen  to  have  gold  funds  bona  fide  at  their  disposal  in 
Europe  not  remitted  from  China  for  the  purpose  and  desire  so  to  use  them. 

In  reimburs^nent  of  expenses  connected  with  the  payment  of  interest  and  the 
repayment  of  principal  of  the  loan,  the  Hongkong  &  Shanghai  Banking  Corporation 
and  the  Deutsch-Asiatische  Bank  will  receive  a  commission  of  one-quarter  of  1  per 
cent  on  the  annual  loan  service. 

Aet.  VIII.  The  Imperial  Gevemment  of  China  hereby  engages  that  the  interest 
and  principal  of  this  loan  shall  duly  be  paid  in  full,  and  should  the  revenue  of  the 
railway  or  the  process  of  the  loan  not  be  sufficient  to  provide  for  the  due  and  full 
payment  of  interest  and  repayment  of  principal,  the  director  general  shall  memorialize 
tke  Throne  and  the  Imperial  Government  of  China  will  thereupon  make  arrangements 
to  ensure  that  the  amount  of  the  deficiency  shall  be  met  from  other  sources  and 
handed  ovct  to  the  banks  on  the  date  u|>on  which  funds  are  required  to  complete  full 
payment  of  interest  and  repayment  of  principal. 

Aet.  IX.  The  loan  is  hereby  secured: 

1 .  By  likin  and  internal  revenues  of  the  province  of  ChihM  to  the  amount  of  1,200,000 
Haikwan  taels  a  year. 

2.  By  likin  and  internal  revenues  of  the  province  of  Shantung  to  the  amount  of 
1,600,000  Haikwan  taek  a  year,  and 

3.  By  revenue  of  the  Nanking  likin  coUectorate  (to  the  amount  of  900,000  Haikwan 
taels  a  year)  and  of  the  Hnai-«n  native  customs  (to  the  amount  of  100,000  Haikwan 
taels  a  year)  in  the  Province  Kiangsu. 

The  principal  revenues  as  above  stated  are  hereby  declared  to  be  free  from  all  other 
loans,  charges,  or  mortgages. 

So  long  as  principal  and  interest  of  the  loan  are  r^^larly  paid,  there  shall  be  no 
interference  with  these  provincial  revenues;  but  if  t^e  principal  or  interest  of  the 
loan  be  in  default  at  due  date,  then,  after  a  reasonable  period  of  grace,  likin  and 
suitable  internal  revenues  of  the  three  Provinces  sufficient  to  provide  the  amounts 
above  stated  shall  forthwith  be  traneierred  to  and  admlnibtered  by  the  Imperial 
Maritime  Customs,  in  the  interest  of  the  bondholders.  And  so  long  as  this  loan  or 
any  ^«urt  thereof  shaO  remain  unredeemed,  it  shall  have  priority  as  regards  both 
principal  and  interest  over  ail  future  loans,  chaises,  and  mortgages  charged  on  the 
above^nentioned  revenues  of  the  three  Provinces.  No  loan,  charge,  or  mortgage 
sliall  be  raised  or  created  which  shall  take  precedence  of,  or  be  on  equality  with  this 
loan,  or  which  shall  in  any  manner  lessen  or  impair  its  security  over  the  revenues  of 
the  three  Provinces  as  above  stated;  and  any  future  loan,  charge,  or  mortgage  charged 
On  the  said  revenues  <rf  the  three  Provinces  shall  be  made  subject  to  this  loan,  and  it 
shall  be  so  expressed  in  every  agreement  for  every  such  future  loan,  charge,  or 
mortgage. 

It  is  understood  and  agreed  that  so  long  as  this  loan  is  unredeemed  the  railway  shall 
under  no  circumstances  be  mortgaged  nor  its  receipts  given  as  security  to  any  other 
party. 

In  the  event  <rf  the  Chinese  Government,  during  the  currency  of  this  loan,  entering 
upon  definite  arrangements  for  the  revision  of  cusdUims  tariff  accompanied  by  stipula- 
tions for  decrease  or  abolition  of  likin,  it  is  hereby  ^jeed,  on  the  one  hand,  that 
such  revision  shall  not  be  barred  by  the  fact  that  this  loan  is  secured  by  likin  and 
provincial  revenues,  and,  on  the  other  hand,  that  whatever  likin  is  required  to  provide 
the  security  of  this  loan  shall  neither  be  decreased  nor  abolished  except  by  previous 
arrangement  with  the  syndicate,  and  then  only  in  so  far  as  an  equivalent  is  substituted 


808 


■RAILWAY  MATEBIALS,  BQUIFMlMT,  AND  SUPPLIES. 


APPENDIXES. 


309 


for  it  ill  tlie  elmp  of  a  first  charge  upoii  th®  incims©'  of  customs  revenue  c^onaequent- ' 
upon  eucli  revision.  : 

AiiT,  X.  The  syndicate'  i«  hereby  aiithorised  to  laaue  to  the  subflcribere  to  the  loan,  ' 
tiondfl  for  the'-' total  amount  of  the  loan  for  TOCli'aiBi.©iiiita  as  may  appear  advisable  to  ' 
the  syadicate.  The  form  of  the  bouds  elmll  be  settW  by  the  syndicate  in  consulta-  i 
tion  with  the  director  general  or  the  Chlneee  MinisteTs  in  London  and  Berlin.  The  \ 
bonds  shall  be  engimved  in  Chinese  and  English  or  Chines®  and  German  as  may  be  ■ 
required ;  they  ibull  bear  the  facsimile  of  th©  signature  of  the  director  .general  and  of  his  i 
seal  of  office,  in  'Order  to  dispense  with  the  necesaiiy  of  signiug  them  all  in  person,  i 
But  the  Chinese  Minister  in  liOndon  or  Berlin,  as  the  case  may  be,  shall,  previous  to  * 
the  issue  of  any  bonds,  put  his  seal  upon  each  bond  with  a  facsimile  of  his  signature,  i 
as  a  proof  that  the  issue  and  sale  of  lie  bonds  are  duly  authorized  bv,  and  binding  ; 
upon,  the  Imperial  Chinei©  GovemmenI,  and  the  representatives  of  the  syndicate  in  \ 
London  and/or  Berlin  shall  countersign  the  bonds  as  agents  for  the  issue  of  the  loan. 

In  the  event  of  bonds  iasued  for  thii  loan  being  lost^  stolen,  or  destroved,  the  syndi-  ' 
cate  shall  immediately  notify  the  director  general  and  the  Chinese  Minister  in  London 
and/or  Berlin,  as  the  cane  requires,  who  shall  authoriie  the  syndicate  to  insert  an 
advertieement  in  the  public  newspapers  notifying  that  payment  of  same  has  been  • 
stopped  and  to  take  such  other  step  as  may  appear  advisable  or  necessary  according 
to  the  laws  and  cu8t4>ms  of  the  country  concerned,  and  should  such  bonds  not  be 
recovered  afteralapee  of  time  to  be  fixed  by  the  iyndicmte  the  director  general  or  the 
Chinese  Minister  in  London  or  Berlin,  as  the  case  may  be,  shall  seal  and  execute 
duplicate  bonds  for  a  like  amount  and  hand  them  to  the  syndicate,  by  whom  all 
expensea.  in  eon,n«ction  therewith  shall  be  defrayed. 

Aet.  XI.  All  bondi  and  coupons  and  payments  made  and  received  in  connection 
with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes  and  imposts  during 
the  currency  of  this  loan. 

Akt.  XII.  All  details  neceanary  for  the  prospectus  and  connected  with  the  payment 
of  the  int«feet  and  repayment  of  the  principal  of  this  loan,  not  herein  explicitly  pro- 
vided for,  shall  be  left  to  the  arrangement  of  the  syndicate  in  consultation  with  the 
Chineee  Ministere  in  liOndon  and  Berlin.  The  syndicate  is  hereby  authorized  to 
iiifie  the  prospectus  of  the  loan  an  soon  as  possible  after  the  siting  of  this  agreement; 
and  the  Impenal  Government  will  instruct  the  Chinese  Ministers  in  London  and 
Berlin  to  coopenite  with  the  isy&dicate  in  ^any  matlen  ;iequiring'  conjoint  action  and 
to  sign  the  prospectus  of  the  loan. 

Art.  XIII.  The  loan  shall  be  issued  to  the  public  in  two  or  more  series  of  bonds, 
the  first  issue  to  be  made  to  the  amount  of  £3,000,600  as  soon  as  possible  after  the 
■tipiature  of  this  agreement  and  not  later  than  12  months  from  the  date  thereof.  The 
price  to  the  Imperial  Cbineise  Government  of  the  first  series  of  bonds  shall  be  93  per 
cent  of  their  nominal  value.  The  second  and  any  subsequent  series  shall  be  issued  in 
time  to  permit  of  iinintenrupted  continuance  of  the  work  of  construction,  in  amounts 
to  be  determined  by  the  director  general,  and  tlie  price  payable  to  the  Chinese  Gov- 
ernment in  respect  of  these  series  shall  be  the  actual  rate  of  their  issue  to  the  public, 
le»  fiotation  charges  of  ^  points  retainable  by  the  syndicate  (that  is  to  say,  a  charge 
of  JBS  10s;  Od.  for  every  XlOO  bond  issued).  Subscriptions  will  be  invited  by  the 
ayndicate  in  Europe  and  in  China  from  both  Chinese  and  Europeans  on  equal  condi- 
tions, preference  being  given  to  the  application  of  the  Chineee  Government,  provided 
such  application  be  made  before  the  issue  of  the  prospectus  to  the  public. 

Art.  XIV.  The  proceeds  of  the  loan  shall  be  p«id  to  the  credit  of  the  Tientsin- 
Pukow  Government  Railway  account  with  the  Hongkong  <&  Shanghai  Banking  Corpo- 
ration and  the  Deutsch-AeiiaiiBche  Bank  in  China,  London,  or  Berlin,  as  the  case 
may  be.  Paymenta  of  loan  proceeds  into  the  credit  of  this  account  shall  be  made  in 
instahnents  and  on  dat»3  conforming  to  the  conditions  allowed  to  the  subscribers  to 
the  loan.  Interest  at  the  rate  of  4  per  cent  per  annum  shall  be  granted  on  the  credit 
balance  of  the  portion  of  this  account  kept  in  London  and  Berlin,  and  intereit  on  the 
credit  batance  of  the  portion  kept  in  China  will  be  allowed  at  the  banks'  rates  for 
current  account  or  fixed  deptosits,  as  the  case  may  be,  to  be  hereafter  arranged.  After 
deduction  of  the  funds  required  for  the  service  of  interest  and  for  commission  on  this 
service  during  the  time  of  construction,  the  banks  will  bold  the  net  proceeds  with 
accrued  interest  to  the  order  of  the  director  general,  who,  in  ordering  payment  of  any 
sums  exceeding  £20,000  shall  give  notice  to  the  banks  10  days  before  the  day  on  which 
they  are  required.  Requiaitionffl  on  the  loan  funds  will  be  drawn  in  amounts  to  suit 
the  progress  of  construction  of  the  railway  by  ordere  on  the  Hongkong  &  Slianghai 
Banking  Corporation  and  the  Deutsch-Aaialiacbe  Bank,  respectively,  signed  by  the 
naniging  director  of  the  railway,  or  in  his  absence,  by  his  duly  authorized  representa- 
tive, and  accompanied  by  his  cerlificales  elating  the  nature  and  cost  of  the  work  to  be 
iwidfor. 


Such  amounts  as  may  be  required  for  expenditure  in  China  may  be  transferred  by 
the  managing  director,  at  his  discretion,  to  Shanghai,  the  transjfers  being  effected 
through  the  Hongkong  A  Shanghai  Banking  Corporation  and  the  Deutsch-Asiatische 
Banks,  respectively,  and  the  transferred  funds  shall  remain  on  deposit  with  those 
banks  until  required  for  railway  purposes. 

The  accounts  of  the  railway  will  be  kept  in  Chinese  and  English  in  accordance 
Witb  accepted  modem  methods,  and  will  be  supported  by  all  necessary  vouchers. 
During  the  period  of  construction  the  said  accounts  and  vouchers  will  be  open  at 
any  time  to  the  inspection  of  an  auditor,  appointed  and  paid  by  the  syndicate,  whose 
duties  will  be  confined  to  certifying  to  the  syndicate  to  the  due  expenditure  of  the  loan 
funds  in  accordance  with  the  pro^^6ion8  of  article  3  of  this  agreement,  and  to  certify- 
ing to  a  monthly  statement  of  the  foreign  matcriab?  purchased  by  the  railway  adminis- 
tration under  the  provisions  of  article  18  hereinafter.  He  will  arrange  with  the 
Railway  Administration  that  his  inspections  shall  take  place  on  such  dates  and  at 
such  intervals  as  will  enable  him  to  efficiently  carry  out  his  duties  as  herein  provided. 
The  railway  administration  will  publish  annually  upon  the  close  of  its  financial 
year,  a  report,  in  the  Chinese  and  English  languages,  showing  the  working  accounta 
and  traffic  receipts  of  the  railway,  which  report  shall  be  prociu^ble  by  the  public 
on  application. 

Art.  XV.  If  during  the  time  of  construction  the  net  proceeds  of  the  present  loan 
with  accrued  interest  should,  after  deduction  of  the  sums  necessary  for  the  service 
of  interest  on  the  loan,  not  be  sufficient  to  complete  the  construction  and  equipment 
of  the  railway  line,  the  amount  of  deficiency  shall  be  provided,  in  the  first  place, 
from  such  Chinese  funds  as  may  be  available  so  as  to  permit  of  the  uninterrupted 
continuance  of  the  work  of  construction,  any  balance  then  uncovered  being  supple- 
mented by  a  further  foreign  loan  for  the  amount  required  to  be  issued  by  the  ejTidi- 
cate.  The  interest  and  other  conditions  of  such  supplementary  loan  wiU  be  the  same 
as  in  the  present  agreement,  and  the  price  will  be  determined  as  in  the  case  of  the 
second  and  subsequent  issues  of  the  present  loan.  If  after  the  completion  of  the  line 
there  should  be  a  balance  at  credit  of  the  railway  account,  such  unused  balance  will 
be  transferred  to  the  credit  of  the  interest  reserve  fimd  hereinafter  mentioned  in 
article  21  as  a  provision  for  pavments  for  which  the  Imperial  Chinese  Government 
is  responsible  under  this  agreement. 

Art.  XVI.  If,  before  the  publication  of  the  prospectus  for  the  issue  of  the  loan, 
any  political  or  financial  crisis  should  take  place  by  which  the  market  and  the  prices 
of  existing  Chinese  Government  stocks  are  so  affected  as  to  render,  in  the  opinion  of 
the  syndicate,  the  successful  issue  of  the  loan  impossible  on  the  terms  herein  named, 
the  syndicate  shall  be  granted  further  extension  of  time,  but  not  beyond  18  months 
from  the  date  of  this  agreement,  for  the  performance  of  their  contract.  If  within 
this  time  limit  the  first  series  of  the  loan  shall  not  have  been  issued,  then  this  contract 
shall  become  null  and  void,  and  any  advances  made  by  the  syndicate  under  the 
provision  of  article  3  shall  be  repaid  by  the  Chinese  Government  with  accrued  interest, 
but  without  any  other  compensation  or  remuneration  whatsoever. 

Art.  XVII.  The  construction  and  control  of  the  railway  will  be  entirely  vested 
in  the  Imperial  Chinese  Government.  For  the  work  of  construction  of  the  fiorthern 
and  Southern  sections,  respectively,  the  Imperial  Chinese  Government  will  select  and 
appoint  fully  qualified  German  and  British  chief  engineers  acceptable  to  the  syndi- 
cat«.  In  the  event  of  the  syndicate  objecting  to  any  proposed  appointment,  the  cause 
of  such  objection  shall  be  definitely  stated.  These  two  chief  engineers  shall  be  under 
the  orders  of  the  managing  director,  or,  in  his  absence,  liis  duly  authorized  repre- 
sentative, and  will  carry  out  all  tlie  wishes  of  the  railway  administration  with  regard 
to  the  plan  and  construction  of  the  line.  In  their  general  conduct  they  shall  pay  all 
due  respect  to  the  director  general  and  the  managing  director.  The  terms  of  their 
respective. agreements  will  be  arranged  by  the  director  general  on  his  sole  authority. 

Whenever  appointments  are  to  be  made  or  functions  are  to  be  defined  of  the  tech- 
nical employees  on  the  railway  staff,  as  well  as  in  the  case  of  their  dismissal,  the 
managing  director,  or,  in  his  absence,  his  duly  appointed  representative,  will  act  in 
consultation  with  the  chief  engineer  of  the  section  concerned  and,  in  the  case  of 
disagreement,  the  matter  will  be  referred  to  the  director  general,  whose  decision 
shall  be  final. 

After  completion  of  construction  the  Imperial  Chinese  Government  will  administer 
both  sections  as  one  undivided  Government  Railway  and  will  appoint  an  engineer 
in  chief— who  during  the  period  of  the  loan  shall  be  a  European — without  reference 
to  the  syndicate. 

Art.  XVIII.  For  the  Northern  and  Southern  sections  of  the  railway,  respectively, 
the  Deutach-Asiatische  Bank  and  the  Cliinese  Central  Kailways  (Ltd.)  will  act  as 


il 


(4 


:ilAILWA¥  MAT1EIAL%  IQUIPMBFT,  AND  SFPPLUa 


APPENDIXES. 


811 


iMMite  of  tiM  .nimy  :ti!iiBiirti||tiiii:  inline, sidi  coMtruction  for  the.  purcliMe  of 
:aQjiMterii]a.  plant,,  «^^  iMjobiii  to  U  uajport'ed  from  OmmA.    For  all  im- 

airwtor;  and  m  IJie^ctae  of  ill  teiiJmi.  faienta  Mii  onleiB  fcr  111©  Importiition  o1 
,go«l8'  md  mawiiale:  Irom  iDroad,  tae  «id  ageiiti  s&all  purcliifle  the  matorlak  r©q  uired 
^QD.  'Qui'  taone  .mint'  fMl'imtageous  to  the  railway,  and  wall  dbarge  the  oriidnal  net  oo^nt 
«l:  'IImi  ■Mae  nlni  a  cemminsioa,  of  5  per  cent.  It  is  ■undewtood  that  no  ^ord,er8  for 
materials  ahall  he  executed,  or  any  expenditure  incurred  without  due  authoriatfttion 
hy  the  nnMii|iag'  diieetor.  ^^^mm^ia 

In  ieit«iiTcir  nayment  of  commMimi  as  ahove  uliited,  Urn  Beutach-Ailatiiche 
Bank  ,aad^th«^  ChmMe  Centrnl  Bailwayt  (Ltd.)  m  ag^nti  within  their^  remective 
njctioniy  ahall  he  wepared  to  Bupectntesd  the  purchaae  of  aO  foreign  matond^  tl 
quired,  .fc  the  conatraction  and  equipmoit  of  the  mOway,  which  ahdl  he  puichas^ 
in.  the  open,  .market  at  the  loweit.  rate  ohtainahle,  it  being  understood  thM  all  such  ' 
S!ii^i  imdjrtiAtoy  guaJity  and  that^the  raUwiiy  administra- 

tioi  Aall  have  the  nght  to  rej^ect  at  .aitiral  m  China  materlala  which  do  not  come  iin 
to  apecificatioiii.    At  eoual  rates  and  qualiUes  goods  of  German  mm!  BritUi  manufac- 
tp©  ahill  he  «ven,  .preference  over  other  goods  of  foreign,  origin  for  the  Northern  and 
Southern  ^ieeions,  respectively ,.    The  railway  adminl8fra3on  reserves  'the  ridbt 
whde  paying  the  above  stinnlated  commlasion  to  the  said  agents,  in  respect  of  all 
piiidiaaee  of  fcffeiyn  n^teriahL  to  avail  itself  of  the  services  of  other  .agents  in  China. 
or  almad  Miinild  it  see  fit  to  do  so.    Original  invoices  and  inspector's  certificates  are 
to  be  «bmitted  to  the  .man,a|ing  director;  all  return  co.nimi88iona  and  robates  of  everv  ■ 
■««cri|>t}on  shall  be  credited  to  the  railway:  and  all  purchases  made  by  the  aemi  > 
on  behalf  of  the  railway  shall  be  supported  by  riianuflicturers'  original  tovoicos  and 
uifMctors'  cettiflcates:.  ^  ' 

Ko  commmon  ahali.  be  paid  to  the  agents..excM»t  m  ,above  ■provided,  but  it  is  und^r- 
■tood.  :that  the  raflway  adSniitialionahall  pro^de  out  Jms^yhm^f^SB 
remuneration  of  consulting  engineen  when,ever  their  servicus  .are  engaged 

lith  a  v\m  to  the  ew»uiagement,of  CWnese  industries,  preference  will  be  iriven 
at  'equal  prices,  and  q'ualitiei,  over  British,  German,  or  other  .foreign  goods,  to  Chines^ 
materials  ,and  goods  maaofsctuied  in  China...    No  commission  mil  l>e  mM  on  nm 
chases:  of  such  materials  and  goods.  *^       ^ 

It  is  understood  and  agreed  that  after  the  construction  of  the  line  is  completed 
the  Deutich-Ajiatiache  Bank,  .and  the  Ch.inese  Central  RaHways  (Ltd.)/wiiriS  thei^ 
respective  sections,  wffl' be  gi:ven  the  prefere.n,ce  for  auch  ,agency  burineM  duiiiS 
the  currency  of  the  loan  for  the  supply  of  foreign  materials  m  the  rail  wayadmSi^ 
tration  may  require,  on  terms  to  be  hereafter  mutually  agreed  upon.  ^^ 

Aier.  XIX.  Branch  Unes  in  connection  with  the  railway  line  mentioned  in  thi« 
agreementjhat  may  appear  profitable  or  necessary  later  on  shall  be  built  bv  the 
Imperial  Chinese  Government  with  funds  at  Ihefr  diupoeal  irom  Chin»  aouitZ 
M J  M  fweign  capital  is  required  preference  wiU  be  given  to  the  syndjdita  ' 

cif  M^r^L' JL'?i1*2^^  !»r"*S*  «»t«^  if P«™l  e*"^ction  ,a  participat-ion 

•of  ,20  .per  cent  of  the  net  prafita  of  the  railway  ,had  been  promised  to  the  syndicate 

Sirr!l?!f!flil^'  ^T  ^T^  responsibility  and  wnrices.    In  ct,mmutetSn  o^ 

this  participation  in  net  profits  the  syndicate  is  granted  the  right  to  retain  £200  (MM) 
out  of  the  &at  Issue  of  ti^ia  loan,  in  installments  «d  on  dateetased  on^d  in^^ 

porfaon  to,  the  terms  of  the  labicription  to  the  loan  as  atated  in  the  pro^pectiT  No 
further  payment  in  respect  of  commutation  of  profits  will  he  aUowed  on  anv  auble- 
quent  series  of  ttie  loan,  or  on  any  supplementary  loan. 

A,»T.,  ,jlKI.  Alter  payment  of  interest  an,d  repayment  of  princiDal  of  the  Itmn  far 
wy  cwrent  yeig,.  the  aiilww  adnffl«^  wifi  deposit  wiftt'thelBrutscrAiSSd^ 
Bank  an.d,  'th,e  Bfoigkong  4  Shanghai  BanMng  Cotpwation  in  Shanghai  or^ntein 
any  surplus  of  the  net  revenue  ol  the  railway  line  for  that  year  up  to  the  amount 
required  to  pay  tlie  following  year's  iuntaUiifints  of  interest  on  the  loan,  the  rate  of 
inter«it  on,  the  deposit  being'  arraiued  with  the  ban,kfl  from  time'  to  time  With  durre- 
gird  to  the  conditions  of  the  market.  ^^ 

Abt.  XXII.  The  Deiitaa^  Bank  and  the  Chinese  Central  Bailwava 

(Ltd.)  may  subject  to  all  their  iibligations  under  this  agreement,  transfer  or  dZM.te 
all  or  any  of  their  ughto,  poweis,  and  directions  thereimder  to  any  German  ot  BnSsh 
co,inpan,y,  directan,  or  ageate  with  'power  'Of  further'  transfer,  and  suhdeleKatior 
l^'Ui^^^''^^^'  drf^gibon,  or  subdelegation  to  be  subject  to  lUtoapprovai 

i^f  mil?^S^  S?^'Srr~l?.^«'^^  Mittiority  of  an  imperial  e'di,ct  dated 
the  mik  day  ^  tht  12ii  Moos  of  the  SM  year  ol  Kuang  Hsu,  coowponding  to  the 


13th  day  of  January,  1908,  Western  Calendar,  which  has  been  officially  communicated 
to  the  ministers  of  Great  Britain  and  Germany  in  Peking  by  the  Waiwupu. 

AiiT.  XXIV.  Five  sets  of  this  agreement  are  executed  in  English  and  Chinese, 
three  sets  to  be  retained  by  the  Imperial  Chinese  Government  and  two  by  the  syndi- 
cate. 

In  the  event  of  any  doubt  arising  regarding  the  interpretation  of  the  contract  the 
English  text  shall  mle. 

higned  at  Peking  by  the  contracting  parties  the  10th  day  of  the  12th  Moon  of  tJie 
33rfl  year  of  Kuang  Hsu,  corresponding  to  the  13th  day  of  January,  1908,  Wester.! 
Calendar. 

[Stamp  of  the  official  seal  of  ike  Waiwupu.] 

LxANo  Tun  Yen. 
pjeutsch-Asiatische  Bank.] 

H.   COEDBS. 

[Chinese  Central  Railways  (Ltd.)] 

J.  0.  P.  Bland, 

EepreseTUalive, 


i 


'I 


1 


ippendii  7. — PAULING  &  CO.  LOAN. 

AQBumifi'  :pmo¥iBnfQ  fob  thx  mfiwcnf  0  and  consteuction  of 

A  B AILWAY  lEOM  A  PODf T  ON  TMl  YANGTZE  BIVIB  OPPOSITE  SHASI, 

flA  'CRAmmB,  "^lUANCHOW,  AN'D  'XWEXTANQ,  TO  SHIN6YI.  IN  THE 

TBH'  HfOTPW  OlRANOtiE'HA 


'This  aareemeiit  is  made  at  Fci-ing  on  the  25tli  day  of  tlie  seventh  month  of  the  third 
year  of  the  Republic  of  China,  being  the  25th  day  of  July,  1914,  and  the  cont rafting 
parties  are  the  Chiao  Tung  Pti»  duly  authorized  by  the  Government  of  the  Republic 
of  China  (hereinafter  iometmes.  refenred  to  as  "the  Chinese  Government"  and  mme- 
tim'CB  m  "the  Government'*),  on  the  one  part,,  and  Mcmto.  Pauling  &  Co.  (Ltd.),  of 
26  Victoria  Street,  London,  S.  W.  (hereinafter  term^ed  the  contractors),  of  the  other 
part. 

Now  it  is  hereby  agreed  by  and  between  the  partiee  thereto  as  follows: 

Article  I.  The  fontractore  or  their  assigna  agree  to  issue  on  behalf  of  the  Govern- 
ment of  the  Republic  of  China  a  sterling  loae  bearing  interest  at  the  rate^  of  5  per  cent 
per  annum  (hereinafter  referred  to  as.  the  loan)  for  the  amount  of  £10,000,000  eterling. 

The  loan  shall  be  of  the  date  on  which  the  first  series  of  bonds  are  iisuctl  and  shall 
be  called  *'*the  Chinese  Government  Railways  5  |jer  cent  Gold  IxMin  of  1914"  [for  the 
.imilwaya  from  a  point  on  the  Yangtze  River  oppoiite  Shasi  to  Shing\'i  in  the  Province 
'Of  Kweichow  and  a  bmnch  line  from  Changten  to  Oumpba]. 

In  the  event  of  the  net  proceeds  of  the  loan  beingSiifficiait  to  defray  the  entire 
cost  ol  the  constniction  and  equipment  of  the  undermentioned  railways  (including 
interest  on  and  commission  for  the  service  of  the  loan  during  construction  ae  herein- 
after provided)  the  total  amount  of  the  loan  may  be  increased  by  a  further  amount 
not  exceeding  ,£2,000,000'  aterliiig  wnking  |Muri  passu  with  the  present  loan. 

Art.  II.  The  proceeds  ol  the  loan  are  designed  for  the  construction  and  eouipment 
of  the  railways  from  a  point  on  the  Yangtze  opposite  Shasi  to  Shingyi  in  the  Province 
of  Kweichow.  ti^ether  with  a  bimnch  line  fwwi  Owngt^h  to  Changsha  (hereinafter 
called  the  railway),  and  lor  all  necessary  expenditure  appertaining  thereto  and  for 
the  paymente  of  the  amounto  agreed  upon  as  compensation  to  the  contractors  for  the 
cancellation  of  previous  agreements  as  set  forth  in  the  Bupplementar>'  a^ement 
made  this  day  between  the  Government  and  the  contractors  and  asaet  forth  in  letters 
exchanged  tkm  day  between  the  Government  and  the  contractors. 

Akt.  III.  The  payment  of  the  interest  and  the  redemption  of  the  capital  of  tlie 
loan  are  guaranteed  by  the  Government  of  the  Republic  of  CMna  and  by  a  special 
lien  u'pon  the  railway,. 

'ThM  sp«:ial  lien  constitutes  a  fi,r8t  mortgage^  in  favor  of  the  contractors  or  their 
anelgtts  acting  on  behalf  of  the  bondlioldere  (hereinafter  called  the  trustees)  upon  the 
railway  itself  as  and  when  constructed  and  on  the  revenue  of  all  descriptions  derivable 
thereinm,  and  upon  .all  materials,  rolling  stock,  and  buildings  of  every  description 
puFchased  or  to  m  purchased  for  the  railway. 

Should  there  he  default  in  payments  on  the  elates  fixed  of  all  or  pmt  of  the  hall- 
yearly  interest  or  amortization  payments,  the  trustees  shall  have  the  right  to  exerc  ise 
on  behalf  of  the  bondholders  all  the  righta  of  Motion  which  may  ace  rue  to  them  from 
the  8^:ial  mortgage. 

This  special  moitgage  is  to  be  executed  by  a  deed  in  accordance  with  this  article. 
But  subject  to  the  guaranty  and  mortsa|;e  thus  given  by  the  Chinese  Government  it 
is  hereby  declared  that  this  raEway  is  m  fact  a  Chinese  property.  The  title  deeds 
of  the  land  for  the  use  of  the  railways  shall  be  free  from  all  encumbrances  and  entangle- 
menta  and  shall  from  time  to  time  m  soon  as  eeeured  be  registered  in  the  name  of  the 
railway.  Notices  ol  all  purchases  of  land  for  the  railway  within  the  survey  limit, 
together  with  the  corresponding  title  deeds,  are  to  be  transmitted  by  the  railway 
hod  office  to  the  representative  of  the  trustees  for  record  and  for  the  purpose  of  eatab- 
liahtng'  the  first-mortgage  flecurity.  Until  the  time  when  the  same  are  to  be  returned 
lo  tfie  Government  as  hereinafter  in  this  article  provided,  all  lands  the  title  deeds 
of  which  are  lodged  with  the  trusteee  as  part  of  the  first- mortgage  security  lor  the  loan 

wMJm 


APPENDIXES. 


oXtl 


shall  not  be  disposed  of  in  any  way  by  hire,  lease,  or  sale  to  any  party  for  any  purpose 
whatsoever  without  the  written  consent  of  the  Chinese  Government,  except  only  in  the 
event  of  the  Chinese  Government  failing  to  pay  the  interest  or  principal  of  the  bonda 
and  then  in  accordance  mth  the  powers  in  the  deed  of  mortgage.  The  lands  thus  bought 
shall  be  free  from  all  encumbrances,  lialtilities,  and  entanglements,  and  shall  be  con- 
veyed by  lull  and  suflScient  deeds  of  assignment  according  to  Chinese  law,  all  of  which 
are  to  be  kept  and  recorded  by  the  repreeentative  of  the  trustees,  and  are  to  be  held 
by  them  as  a  first-mortgage  security  for  the  bonds  under  the  provisions  of  this  agree- 
ment untD  such  time  as  the  principal  and  interest  of  the  bonds,  together  with  all 
indebtedness,  shall  have  been  paid  off,  when  the  same  .«?hall  then  be  returned  to  the 
Chinese  Government,  except  only  in  the  case  of  the  Chinese  Government's  failure  to 
pay  the  interest  or  principal  of  the  bonds  and  consequent  action  of  the  trustees  under 
the  powers  of  the  mortgage  security. 

For  the  further  protection  of  the  first-mortgage  security  the  Chinese  Government 
undertakes  that  until  the  bonds  shall  have  been  redeemed  no  part  of  the  lands  com- 

f>rised  in  the  mortgage  security  or  the  railway  with  its  appurtenances  shall  be  trans- 
erred  or  given  to  another  party  or  shall  be  mjured,  and  that  the  rights  of  the  first 
mortgage  shall  not  be  in  any  way  impaired  unless  with  the  consent  in  writing  of  the 
trustees,  which  shall  only  be  given  if  in  the  opinion  of  the  trustees  the  interests  of  the 
bondholders  will  not  be  affected. 

And  further,  that  until  the  interest  and  principal  of  tiie  loan  and  all  the  indebted- 
ness shall  have  been  paid  off  or  unless  with  the  express  consent  in  writing  of  the 
trustees  the  Chinese  (lovemment  shall  not  again  mortgage  the  above  projwrtiee  to 
another  party,  whether  Chinese  or  foreign. 

Art.  IV.  It  is  agreed  that  if  the  half-yearly  interest  on  the  bonds  is  not  paid  on  any 
due  date  thereof,  or  if  the  principal  of  the  loan  be  not  paid  in  accordance  with  the 
amortization  schedule  hereto  attached,  the  whole  railway,  with  all  its  appurtenances 
herein  mortgaged  to  the  trustees  for  the  bondholders,  shall  be  handea  over  to  the 
trustees,  to  be  dealt  with  by  them  according  to  law  in  such  manner  as  will  insure  the 

fjroper  protection  of  the  interests  of  the  bondholders,  provided,  however,  that  if  the 
ailure  to  make  payment  at  any  one  date  be  due  to  causes  beyond  the  control  of  the 
CMnese  Government,  and  if  the  Chinese  Government  request  the  trustees  to  postpone 
the  taking  over  ol  the  railway  for  a  reasonable  period  of  grace,  which  shall  not  exceed 
six  months,  the  question  shall  be  amicably  discussed  and  decided  between  the  Chinese 
Government  ana  the  representative  of  the  trustees.  When  the  whole  loan  and  the 
interest  due  thereon  ana  all  the  indebtedness  shall  have  been  paid  off,  the  railway, 
with  all  its  appurtenances  in  good  working  condition,  shall  revert  to  the  possession 
and  management  ol  the  Chinese  Government  according  to  the  provisions  of  this 
agreement. 

Art.  V.  The  interest  on  the  bonds  is  to  be  paid  every  half  year  on  the  first  day 
of  June  and  the  first  day  of  December,  and  it  is  hereby  agreed  that  the  amount  re- 
uuired  for  the  payment  of  interest  and  the  repayment  of  principal,  together  with 
tne  sum  of  a  quarter  of  1  per  cent  on  such  amounts  to  cover  commission  to  the  con- 
tractors or  their  assigns  who  are  hereby  appointed  the  t^nts  for  the  entire  service 
of  paying  the  loan,  shall  be  paid  to  the  contractors  or  their  assigns  14  days  before 
the  due  dates.  During  the  time  of  construction  the  amounts  necessary  for  the  pay- 
ment of  the  interest  on  the  loan,  together  with  the  commieeion  of  a  quarter  of  1  per 
cent  above  referred  to,  are  to  be  paid  over  to  the  agents  for  the  entire  service  of  re- 
paying the  loan  out  of  the  proceeds  of  the  loan  on  deposit  with  the  issuing  bank  14 
days  before  the  due  dates  and  on  the  requisition  of  the  contractors  or  their  assigns. 
The  accruing  interest  from  any  proceeds  of  the  loan  not  used  during  the  period  of 
construction  and  the  earnings  derived  by  the  Government  from  the  working  of  any 
sections  of  the  railway  as  they  are  built  are  to  be  used  to  make  up  the  amount  required 
for  the  payment  of  the  said  interest  and  if  any  deficiency  remains  it  is  to  be  met  from 
the  proceeds  of  the  loan.  When  the  construction  of  the  railway  is  wholly  completed 
the  interest  on  the  bonds,  together  with  the  commission  for  the  service  of  the  loan, 
is  t-o  be  paid  from  the  income  or  earnings  of  the  railway  received  by  the  Government 
to  the  contractors  or  their  assigns  14  days  before  the  due  dates  in  sterling  in  London. 

The  Chinese  Government  unconditionally  undertakes  and  hereby  promises  to  pay 
the  principal  of  the  loan  and  the  interest  on  the  loan  on  the  due  dates  fixed  therefor. 
If  at  any  time  the  earnings  of  the  railway,  together  with  the  funds  available  from 
the  proceeds  of  the  loan,  are  not  sufficient  to  meet  the  interest  on  the  bonds  and  the 
repayment  of  capital  in  accordance  with  the  amortization  schedule  hereto  attached, 
the  Government  shall  take  measures  to  make  up  the  deficiency  from  other  sources 
and  then  be  ready  to  pay  off  the  indebtedness  so  that  the  required  amount  may  be 
placed  in  each  case  at  least  14  days  previous  to  the  due  dates  of  such  payment  in 
the  hands  of  the  contractors  or  their  assigna. 


814 


:»AIIiWA¥  MATERIALS,  'IQU'IPMBHT,  AM)  STJPPUES. 


'A«»-  yj-  'Tlif  boacli  riiall  }m  hmiB  of  tk©  'Gwennneiit  of  tbe  Reiwiblic  of  China. 

Amt .^  VII.  The  iunitioii  of  tii«  Iomi  Ii  fixed  at  40  yean,  commeacing  from  th©  dato 
of  tile  tame  of  th©  loan,  but  no  intorwt  ahall  b©  paid  on  any  bond  wfich  may  b©  ro- 
d«©iB©d,  Of  canciiled  mnirn  Hie  tenia  bordnaftor  mentioned  after  the  redemption 

or  cao©iIlrtfaii  flMMf.  Oii.^«iM^  ;iKiii.  ol  each  of  tbeee  bonds  ehall  bo  exprewed  tb© 
■ytim  'tbmnf  'in  'ii©'  iiun.  of  gm  m  any  mck  different  amounts  m  th©  (Mnem  Ifiniatet 
m  London,  in  comnltation  ■wifli  'Ibe  'Contractors  or  their  mdgm,  may  eanction. 

itopaynwnt  of  pondpal  liiall.  com^iMiic©'  after  the  expiry  ^  12^  years  from  the  date 
of  tie  loan  tiid.'iliall  b©  co»pl;©ted  .in  .27|  yean,  by  yoaily  paymente  to  the  contractors 
Of  'liiot  aongni^  M  aMnti:  ior''"tke  ■©rvice  of  'the  loan  nnder  th©  tens  of  this  agreement 
in  accofdmce  with  the  amortiaation  schedule  hereto  attached.  If  at  any  toe  after 
the  expiry  of  1||  years  from  the  date  ol  the  loan  th©  China©  Oovemment  should  wish 
to  redeem  the  oiilitanding  amount  of  the  loan  or  any  portion  <if  it  not  yet  due  under 
■the^'poWiMBii:  of  the  aniortiaati«i  achedule  befeto^  attached,  not  leee  than  six  months' 
noface  shall  be  nvon  in  'wri.ting  by  the  ■Chinese  Govenmient  to  the  repreaentative 
of  the  contractoii  or  their  aligns  dedaiiiig  the  number  of  additional  bonds  so  required 
U  be^iedewMd,  wiflieupon  the  'nipiiaentatiYe  of  the  'Contractors  or  their  assigns 
shall  ;iniBi«li*tely  proceed  to^  .make  such  anangements.  aa  may  be  necessary  and  usual 
far  the  redemption  of  the  number  of  bonds  specified,  wbich,  when  duly  redeemed 
after  payment  by  the  Chinese  Government  of  the  proper  amount  due  thereon,  shall 
bo'  'Caneeled  and  deiivefed.  to  the  Chines©'  'Qoremment. 

All  'bdnds  'tbtii^  ndeam©d.  in.  '©xcess  of  the  amount  ap©c:ified  in  the  amortization 
ichediile^beretO'  atlacbed  before  the  '©xpiry  of  25  years  torn  the  date  of  the  loan  shall 
be  paid  for  with  a  premium  of  2|  per  cent  over  their  lace  value  (that  is,  £102  lOs. 
'weuld  bO'  'iMi'iiiiwi  to  be'.paid  fot  *'M0),  but  aflei  25  years  bonds  may  be  redeemed 
'0¥«t  'and  above  'the  amoont  apecified  in.  the  acied'ul©  wi.thout  premium  upon  notice 
being..pTen  m  ^m  manner  above  specified.. 

As  soon  as  the  loan  has  been  completely  redeemed,  this  agreement  sliall  become 
;nni  ^and  void  and.  'the  mortfage  ilttll  'be  canceled. 

.A.BT:  ¥111.  Ai'  to'  the  lonn.  M  'th©  'bonds,  it  is  to  b©  .agreed  upon  by  the  Chinese 
Government  or  bv  the  'GUncm^-lliniitiir  in.  London  and  th©  'contractors  or  their  assigns 
.as  'Soon  as  poiiiMe  'after  the  ilgnstvre:  of  this  agreement,  but  if  'hereafter  the  money 
:nMirk0ti'in.l4]iidon  or'  othw  'eoia:tziea'i©<|'iii«©'.any  mod.ificati.on  of  the  form  of  the  bonds 
'exi:«pit'.in.anytMnc  thiit.affflcls  tie  .amount  'Of  the  loan  and  the  liability  ol  th©.  Cbin.ese 
GovemiBfliit  'Cwhicii  aie-  'not  'to'  'be  touched,  at  all)  such  .slight  mod.ificatiiiiiB.  may  be 
made^  to  meet  tibe^  viewa  of,  the  .money  :marlEetfl'  by  the  contractors  or  their  assigns  in 
caMiitstion  with  the  CMneee  Minister'  in  London..  .Any  modifications  are  to  be 
.repwted  ati  'Once  by  the  contractors  or  their  assigDi  to  the  Chinese  Government. 

The  bonds  are  to  be  engraved  entirely  in  the  English  language  and  shall  bear  a 
faceimile  of  the  signature  of  the  Minkter  of  CommunicatioM.  and  of  his  seal  of  office 
in^  order  to  dispeoae^  with  the  U'ecesaity  of  signing  them  all  in  person,  but  the  Chinese 
IfuKbte'  In.  .LifidMii.  ahaU..  pre^vioiis  .to  the  .issue  ol  any  bonds,  put  bit  seal  upon  each 
bond,  with  .a  .iaciiniile'  of  his  isignatiiie  as  .a  proof  'that  the  issue  and  sale  of  the  bonds 
ate  duly  authoriaed  'Bnd  binding  upon,  the  CMnese  Government. 

Such  bonds  are  to  be  numbered  consecutivelv,  and  as  many  bonds  as  may  be  needed 
•le  to  be':  MM^ietly  eqmved.  i«i'«the  ■unervision  of  the  'contractors  or  their  aasigna, 
nd  after  'tlMqr'  are.  iSMiled.  by  'the<  'Qhinea©  Minister  .in  .London  as  heretofore  provided 
are  'to  be  eomteniigiiied  by  tie  'Contracltm  or  'their'  assigns. 

II  any  of  the  bonds  herein  mentioned  are  lost  or  destroyed,  a  reissue  of  any  thereof 
iS'  to  hB  .made  in.  the  .amounts  respectively  c*l.led  .for  by  such  .lost  or  destroyed  bonds, 
but  ,pMp©r'  proof  ol  the  loss  'Or  'destruction,  must  be  given  in  the  usual  form  to  the 
contiac^ten  or  their  .assigns  and  the  Cbinese  :Miniater  in  London  for  examiuauon 
and  record,  and  the  requisite  ^aranty  is  to  be  obtained  by  the  contractors  or  their 
assigns  from  'the  i©i|Melive  "Claimants  cfnceaed,  who  shall  defmy  all  expenses'  cou- 
.nec'ted  with,  siicb.  reasne  of  bondS'  lost  or'  destroyed  and  who  under  the  said  guaranty 
shall  undertake  to  .indemaily  the  Cbineie  'GO'Vemment  and/or  the  contractors  or 
their  asiignS'  for  any  loss  sustained  by  reason  ol  the  issue  ol  bonds  'in.  the  place  of  the 
bonds  lost  or  destroyed. 

Anx.  EX..  .AM. dewla- .necessary  .for'  'the  prospectus  and  connected  with  the  payment 
'Of  mtmmA  maA  .fapsnieiit  of  thO'  principal  ^of  this  loan  not  herein  explicitly  provided 
'lor  iShaM.  be  .lelt  to'  the  ammgiilMBt  of  the  contitetoiB  or  their  aflsigni  in  consultatioa 
With,  the  CUnese'  .Ministe  of  Ijoodon.  The  contractoia'  or  their  assigns  are  hereby 
atillMEijied.  to  .iaauO'  'the  prosoectus  'Ol  the  loan,  as  .soon  as  possible  after  the  signing  of 
thiS:  agmamflBt,  and.  the  Ghlneae  Government  will  instaict  the  Chinese  Minister  in 
London  to'  cooperate  with  the  €ontiac:tor8^  or  their  asiigiii  in  any  matteia  requiring 
coDjoiiit  iictioB  and.  'to'  sign,  the  proipctiia  of  the  Ion. 


APFIU^DIXES. 


815 


AsT.  X.  The  loan  shall  be  Issued  to  the  public  in  two  or  more  series  of  bonds,  Hin 
first  issue  to  be  made  to  Ihe  amount  of  from  £1,000.000  to  £2.000,000  sterling  as  sooa 
as  possible  after  the  signature  of  this  agreement.  The  issue  pnce  of  the  bonds  shall  be 
fixed  by  the  Government  and  t|ie  contractors  or  thebr  assigns  some  time  before  the 
issue,  taking  the  last  price  of  similar  bonds  as  a  basis  lor  fixing  th©  market  price. 
The  prices  payable  to  the  Government  shall  be  the  actual  rate  of^ issue  to  the  public 
less  a  sufficient  amount  to  cover  the  cost  of  stamps  on  the  bonds  in  the  various  countries 
of  issue  (provided  always  that  at  least  50  per  cent  of  the  bonds  shall  be  Issued  in 
London)  plus  flotation  charges  of  4  per  cent  retainable  by  the  contractora  or  their 
assigns  (that  is  to  say,  a  charge  of  £4  for  every  £100  bond  issued).  . 

After  this  agreement  is  signed  and  pendiii  the  issue  ol  tbe  loan,  the  contractora 
or  their  assigns  shall  deposit  the  sum  of  £50  000  with  the  issuing  bank  to  the  railway 
account,  and  this  amount  can  be  drawn  on  b)^  the  Government  for  survey  and  othet 
necessary  expenses  authorized  by  the  managing  director  against  certificates  Bign&a 
by  the  chief  accountant  and  ^igineer  in  chiefand  pending  their  appointment  against 
certificates  signed  by  the  representatives  of  the  contractors.  This  sum  of  £50,000 
shall  bear  interest  at  tjie  rate  of  5  per  cent  per  annum  and  shall  be  refunded  out  of 
the  proceeds  of  the  loan. 

Art.  X  J.  The  net  proceeds  of  the  loan  shall  be  deposited  with  the  issmng  bank  to  bo 
nominated  and  ffuajramteed  by  the  contractors  to  the  credit  of  "A  Shasi-Shin^ 
Changteh-Changsha  Railway  Account"  and  shall  bear  interest  at  the  rate  of  one-hal! 
©I  Iper  cent  bdfow  the  official  rates  oi  the  Bank  of  England. 

When  the  work  ol  construction  is  ready  to  begin,  a  sum  equal  to  the  estimated 
expenditure  in  China  for  six  months  shall  be  transferred  to  a  bank  in  Chioa  to  b© 
nominated  and  guaranteed  by  the  Government  and  there  paid  to  the  credit  of  "A 
Shasi-Shingyi  Chaugteh-Changsha  Railway  Account"  to  be  operated  upon  by  the 
Government  under  certificate  signed  by  the  chief  accountant  and  the  engineer  in 
chief.  This  amount  ol  estimated  expenditure  lor  six  months  shall  be  maintained  by 
subsequent  monthly  transfers  so  that,  as  far  as  possible,  there  shall  always  be  six 
months'  estimated  expenditure  in  China  deposited  in  a  bank  in  China  to  be  nominated 
and  guaranteed  by  the  Government.  The  rate  of  interest  to  be  paid  by  such  bank  in 
China  to  be  at  the  ruling  rates  of  the  day  in  China. 

Art.  XII.  The  contractors  or  their  assigns  (herein  called  the  trustees)  are  hereby 
M^inted  trustees  for  the  bondholders,  and  in  any  future  negotiations  respecting  this 
mm  or  matters  arising  in  connection  therewith  which  may  take  place  between  the 
Chinese  Government  and  the  trustees,  the  trustees  shall  be  taken  as  representing  the 
bondholders  and  as  such  empowered  to  act  on  their  behalf.  In  view  of  the  fact  that 
the  trustees  will  continue  to  represent  the  bondholders  after  construction,  they  shall 
receive  as  remunemtion  for  their  services  and  duties  in  acting  as  trustees  for  the  bond- 
holders the  sum  of  £1,000  per  annum,  such  remuneration  to  commence  from  the  date 
of  issue  of  this  loan  and  to  terminate  upon  its  complete  redemption. 

Aet.  XIII.  When  the  railway  is  complete,  if  there  is  a  surplus  from  the  sale  of 
bonds  the  said  surplus  shall  be  at  the  disposal  of  the  Chinese  Government  either  to 
redeem  the  bonds  in  accordimce  with  the  terms  of  this  agreement  as  hereinafter  stated 
or  to  be  placed  on  deposit  with  a  bank  to  be  mutually  agreed  upon  for  the  purpose  of 
paying  interest  on  the  loan  or  for  other  purposes  beneficial  to  tlie  railway  in  regard  to 
which  the  Chinese  Government  will  communicate  in  due  course  v^dth  the  trustees. 

Abt.  XIV.  All  lands  that  may  be  required  along  the  whole  course  of  the  railway 
within  the  survey  limits  and  for  the  necessary  sidings,  stations,  repairing  shops,  and 
car  sheds  to  be  provided  for  in  accordance  with  the  detailed  plans  shall  be  acquired  by 
the  Government  at  the  actual  cost  of  the  land,  together  with  the  necessary  expenses 
connected  with  its  acquirement,  and  shall  be  paid  for  out  of  the  proceeds  of  the  loan. 

Art.  XV.  Immediately  after  the  signing  of  this  agreement  the  Government  will 
establish  a  head  office  at  Changsha  or  some  equally  convenient  place  for  the  railway 
and  will  maintain  the  same  until  all  bonds  are  paid  off.  This  office  will  be  imder  the 
direction  of  a  Chinese  managing  director  who  shall,  during  the  period  of  construction, 
be  a  Chinese  engineer  of  standing  to  be  appointed  by  the  Government,  with  whom 
will  be  associated  a  chief  accountant  (hersmafter  called  the  chief  accountant),  who 
shall  be  an  Englishman  and  may  be  the  representative  of  a  British  firm  of  public 
accountants  of  recognized  standing,  and  aftOT  the  completion  of  construction  an 
engineer  in  chief  (hereinafter  called  the  engineer  in  chief  after  construction),  who  shall 
be  an  Englishman.  These  British  employees  and  their  successors  in  office  shall  be 
nominated  by  the  Government  and  the  trustees  jointly  and  shall  be  appointed  by  the 
Government.  The  dismissal  of  these  British  employees  and  their  successors  in  office 
shall  take  place  only  with  the  joint  approval  of  the  Government  and  the  trustees,  and 
any  vacancies  caused  from  time  to  time  by  the  death,  dismissal,  resignation,  or  retire- 
ment ol  both  or  either  ol  them  or  <d  their  respective  successors  shall,  wMle  this  article 


ill 


EAILWAY  MATERIALS,  EQUIPMENT,  AND  SUPPUBS.. 


re' 


mains  in  force,  be  filled  up  by  tlie  noniiottion  and  appointment,  in  manner  afore- 
laid,  of  pereona  of  British  nationality  and  limilarly  qualified  m  aforesaid. 

It  is  undewtood  that  the  duties  to  be  perfofined  by  Aeee  employees  are  intended  to 
promote  tbe  mutual  interests  of  both  the  Government  and  the  bondholders,  and  it  ia 
■therefore  agreed  that  all  cases:  of  difference'  arii!i:i|  themfrom  shall  be  referred  for 
amicable  aajnetment  betwe«n  the  Government  and  iie  representatives  of  the  trustees. 
The  »lariee  and  other  terms  of  agreement  of  the  engineer  ia  cMef  after  construction 
and  the  chief  accountant  shall  be  arranged  between  the  Government  and  the  trustees 
and  the  amount  of  their  eakries,  etc.,  shall  be  paid  out  of  the  general  accounts  of  the 
»iiway. 

For  all  important  technical  appintments  for  the  operation  of  the  railway,  Europeans 
of  experience  and  ability  shall  be  engiged,  and  wherever  equally  competent  Chinese 
are  avaikble  'they  shall  be  jmfoiitbiT  «nployed.  All  such,  appointments  shall  be 
made  and  their'  functions:  defined  by  tne  managing  'director  and  the  engineer  in  chief 
after  constntetion  in  consultation  and  shall  be  nibniitted  for  the  approval  of  the 
Government,  Similar  procedure  diall  be  followed  in  the  case  of  Europeans  employed 
in  the  chief  accountaars  department.  In  the  event  of  the  misconduct  or  the  incom- 
petency of  these  European  employees  their  services  may  be  dispensed  with  by  the 
managing  director  after  coiunltation  with  the  engineer  in  chief  alter  construction  and 
lubject  to  the  sanction  of  the  Government,  The  form  of  agreement  made  with  these 
European  employees  shall  conform  to  the  ustial.  pimctice. 

The  accounts  of  tho'  receipts  and  the  disbiusements  of  the  'railway's  construction  and 
opemtlon  Aall  be  in  Chinese  and  in  EnffUah  'In  'the  department  of  me  chief  accountant, 
wnose  duty  it  shall  he  to  oiganize  and  supervise  the  same  and  to  report  thereon  for 
the  information  of  the  Government  through  the  managing  director  and  of  the  trustees 
»  representing'  the  hondholdem.  All  receipt^^and  naymente  shall  be  certified  by  the 
^chief  accmmtant  and  authorised  by  the  'manajmg  ffirector. 

The  chief  accountant  shall  so  employ  his  Chines©  stuff  that  the  principal  members 
thireof  shall  have  every  opportunity  of  becemiig  thoroughly  acquainted  with  the 
whole  imtiem  .and  method  of 'the  accountant's  department. 

For  'the  "geneiml'  'technical  staff  of  'the  railway  al'ter  completion  of  construction  the 
necessary  ammgements  liiall  be  made  by  the  managing 'director  in  consultation  with 
the  engineer  in  chief  after  construction  and  reported  to  the  Government  in  due  course. 

The  duties  of  the  engineer  in  chief  after  construction  shall  consist  in  the  efficient 
and  ecenomica]  maintenance  of  the  railway  and  the  general  supervision  thereof  in 
con8nl't8ti,on  with  the  mantglug  director. 

The  engineer  in  chief  after  construction  shall  always  give  courteous  consideration 
to  'the  wiAee^'and  ins'tnictions  of  theGovemment,  whether  conveyed  directly  or  through 
'the  m.uiaeiiqr  director,  and  Aall  tlwayi'  on'ply  theiwwith,  having  at  'the  same  time 
due  re^rd.  to  the  eficient  m:ain:tenance  of'' 'the  railway. 

During  the  period  of  construction  a  fixed  yearly  sum,  which  shall  be  paid  out  of  the 
BWMJeeds  of  the  loan,  and  the  amount  of  which  shall  be  decided  between  the  Minister 
of  GommunicationB  and  the  contiscixin  or  their  assgns,  shall  be  pkced  at  the  disposal 
of  the  BoaM  of  the  Ministry  of  Oammunications  to  be  used  for  office  expenses  at  the 
discretion  of  the  Minister  of  Communications. 

A  school  for  the  education  of  Chinese  in  railway  matters  shall  be  established  by  the 
managing  director  subject  to  the  approval  of  the  Government 

The  pro\TsionB  of  this  article  shall  take  effect  and  femain  in  force  not  only  during 
construction,  in  so  far  as  they  apply,  but  thereafter  as  long  as  any  of  the  bonds  are 
otttirtandin|;  and  unredeemed. 

Art.  X\L  Immediately  alter  the  signin|c  of  thia  agreement  the  Government  shall 
appoint  for  the  period  of  construction  a  British  firm  of  consulting  engineers  (herein- 
after called  the  consulting  engineens)  of  recognized  standing  to  be  selected  solely  by 
the  Government  provided  that  the  contractors  shall  have  the  right  to  object  when  such 
selection  is,  in  the  opinion  of  the  oentractow,  detrimental  to  the  construction  or  to  the 
interestB  of  the  bonclholden,  and  in  that  case  the  contractoro  shall  put  their  reasons 
for  objecting  in  writing  so  that  the  Government  may  reconsider  &e  matter.  The 
repreeentative  in  China  of  the  consulting  en^neers,  who  shall  be  an  Englishman, 
shall  be  the  engineer  in  chief  during  construction  (hereinalter  called  engineer  in  chief 
durinf?  coostruction)  and  shall  be  aasociated  with  the  managing  director.  The  removal 
or  dismissal  of  the  consulting  engineen  and/or  their  succeesors  in  office  shall  only  take 
place  with  the  joint  ap|)roval  of  the  Government  and  the  trustees,  and  fresh  appoint- 
ments of  consulting  engineers,  who  shall  ahm  be  of  British  nationality  and  recognized 
standing,  shall  only  be 'made  in  the  manner'  aforesaid. 

The  eoffineer  in  chief  during  constructten  shall  supervise  the  efficient  construction 
of  the  railway  by  the  contractors  in  the  interests  of  the  Government  and  the  bond- 
holders in  ^acceniiMs  with,  the  terms^  of  this  agreement 


APPENDIXES. 


317 


It  is  understood  that  the  duties  to  be  performed  by  the  consulting  engineers  and  the 
eigineer  in  chief  during  constniction  are  intended  to  promote  the  mutual  interests  of 
the  Government  and  the  bondholders,  respectively,  and  it  is  therefore  agreed  that  all 
caces  of  difference  arising  therefrom  shall  be  referred  for  amicable  adjustment  betveea 
the  Government  and  the  representative  of  the  tnistees.  The  salaries  and  other  terms 
of  agreement  of  the  consul  ting  engineers  and  the  engineer  in  chief  during  construction 
fchall  be- arranged  between  the  Government  and  the  trustees,  and  the  amount  of  their 
calaries,  etc.,  shall  be  paid  out  of  the  general  accounts  of  the  railway. 

The  consulting  en^eers  and  the  engineer  in  chief  during  construction  shall  alwavs 
give  courteous  consideration  to  the  wishes  and  instructions  of  the  Government,  whethar 
conveyed  directly  or  through  the  managing  director,  from  whom  they  shall  receive 
teclmical  instructions  and  shall  always  comply  therewith,  having  at  the  same  time 
due  regard  to  the  efficient  construction  and  equipment  of  the  railway  so  that  it  may 
form  good  security  for  the  bondholders. 

The  plans  and  specifications  and  all  type  drawings  of  the  railwav  are  to  be  prepared 
by  the  consulting  engineers  subject  to  the  supervision  and  approval  of  the  managing 
director,  lia\ing  due  regard  to  the  future  eammg  power  of  the  capital  to  be  expended 
in  construction  and  equipment,  to  the  local  conditions  and  requirements,  to  economical 
construction,  and  to  the  probable  amount  of  traffic  of  the  railway — ^keeping  in  mind 
that  an  economically  designed  line  of  efficient  construction,  earning  power,  and 
equipment  is  required  in  the  interests  of  the  Government  and  so  as  to  form  good 
security  for  the  bondholders. 

A  sufficient  amount  of  rolling  stock,  including  locomotives  for  the  operation  of  the 
railway,  shall  be  provided  and  the  engineer  in  chief  during  construction,  in  consulta- 
tion with  the  managing  director,  shall  decide  the  specifications  both  as  to  qualitj-  and 
quantity  of  the  same,  having  due  regard  to  the  probable  amount  and  nature  of  the 
traffic  of  the  railway. 

Art.  XVII.  Should  the  Chinese  Government  adopt  a  unified  system  for  railway 
operation  and  accounts,  and  a  general  standard  for  equipment,  permanent-way 
material,  and  steel  sections,  the  management  of  the  railway  shall  comply  with  such 
B>'8tem  and  standards,  provided  that  the  adoption  of  such  system  and/or  standards  does 
not  conflict  with  the  interests  of  the  bondholders. 

Art.  XVIII.  The  contractors  are  hereby  appointed  the  agents  of  the  Government  of 
the  Republic  of  China  for  the  construction  and  equipment  of  railway  and  works,  and 
as  such  agents  the  contractors  shall  in  a  good  and  workmanlike  manner  and  with  good 
materials  and  to  the  reasonable  satisfaction  of  the  managang  director  and  the  engineer 
in  chief  during  constniction,  construct  and  complete  the  railway  and  works  accordin*' 
to  the  specifications  and  plans.  The  contractors  shall  locate  the  railwav  in  accordance 
with  the  instructions  of  the  Government  conveyed  through  the  managing  director  and 
to  the  satisfaction  of  the  engineer  in  chief  during  constniction. 

The  contractors  are  hereby  appointed  as  agents  for  the  Railway  Administration 
during  construction  for  the  piu*ciiase  of  all  material,  plant,  and  goods  required  to  be 
imported  from  abroad.  For  all  imj^ortant  purchases  of  euch  materials  tenders  may  be 
called  for  by  the  managing  director,  and  the  decision  with  regard  to  the  acceptance* 
or  refusal  of  such  tenders  shall  rest  with  the  managing  director  subject  to  the  approval 
of  the  engineer  in  chief  during  construction.  In  the  case  of  all  tenders,  indents,  and 
orders  for  the  importation  of  goods  and  materials  from  abroad,  the  said  agents  shall 
purchase  the  materials  required  on  the  terms  most  advantageous  to  the  railwav  and 
shall  chai^  the  original  net  cost  of  same  together  with  the  remuneration  specified  in 
Article  XXI  of  this  agreement.  It  is  understood  that  no  orders  for  materials  shall  be 
executed  or  any  expenditure  incurred  without  the  approval  of  the  managing  director 
and  the  engineer  in  chief  during  construction. 

The  contractors  shall  arrange  for  inspection  before  shipment  of  all  materials  pur- 
chased abroad  and  shall  charge  the  actual  cost  of  such  inspection. 

The  managing  director  and  engineer  in  chief  during  construction  shall  arrange  fc»- 
the  inspection  of  all  important  materials  purchased  in  China,  and  no  materials  shall 
be  accepted  without  their  joint  approval. 

Art.  XIX.  The  contractors  shall  appoint  a  competent  and  duly  authorized  agent 
who  shall  be  reasonably  satisfactory  to  the  Government,  to  reside  on  or  near  the  works 
to  represent  them  (the  contractors)  and  have  on  their  behalf  charge  of  the  railway 
and  works  during  construction,  and  also  as  many  competent  and  responsible  engineers 
inspectors,  foremen,  superintendents,  subagents,  overseers,  and  laborers  as  they  ma\' 
deem  to  be  from  time  to  time  necessary.  The  contractors  shall  also  provide  all  the 
necessary  medicines  and  medical  attendance  for  all  persons  employed  on  the  railwav 
and  works.  ' 

The  contractors  imdertake  on  their  part  that  then-  foreign  staff  shall  observe  the 
usages  of  courtesy,  together  with  due  respect  to  the  eetabiifihed  institutiona  of  the 


I 


MAY  ■MATUMAUI,.  WHJIPliiarr,  AND  SUPPLI18, 

rj.  fnrtT^S^J22S£'Sfe  ^  *i>n.  «  nafice  b^  brought  to  the  contractors, 
^hmuJ^v^SSS  ff*  w*  •«*«*h*  to  the  circnm.t«icee  of  the  case. 
-  hould  Mtv  rnwqplgjrt  be  made  at  any  time  by  the  numaging  director  aeainst,  anv 

o  ^'iSlf^S'JS'lSSS  ^J*^-"  foreign:  about  hisTS.eir  impropT^ti"^ 
^J^SSS^J^lj'^"'2L^'?*^-''"°>  ;i  ""=«  inveetigated  m  tlat  justice 
'^™  f »^^{SSj2i2^S?y  aAnJ-iata^i    Should  the  complaint  or  chixc  be 


iwoven  fto  obieetianMe penoB  «r pemna ifcdil  beTOmoved  ra  the'root' 
technical  aaMuiti  enployed  in  the  coaatmctjon  ahall^e 


deDiii1teiirt%  M^  the^«of^6iifiiig'''''ilatt  tliafl  U  »itnict«i  to  Wp  them  aa  far  m  poe- 
ffllile  byaffordmg  all  mformatioii  relating  to  the  OMiiteiictlMi..  * 

Bf™S;*??LJ^iSr^i^l^  ^  %  wa:way  and  for  all  the  piirpofl«i  of  con- 

Btriictwn,  tod:iiiiiii|  Wlirt.  nd  hmmw  inH),  whether  permanent  or  tempomn\  with 
all  nghtH^-iwyJadlilMi,  and  .aeeen  U  m^  iiia%  diali  G  placed  at  the  service  of  the 

!!!2SS2L!^  ■"^*****^  witinmt  diilaj  ^or  hmd:nmw,  and  when  lequimtioned  by  the 

^  ^L^Ia  '^**®-  P^**' **>  '*»  P«?  ^y  **»  Oovernmeiit  tn^  "the  cimtractOTS  for  the  con- 
Blmftion  and  equipment  and  maintenance  during  coiitrtcfiwi  of  the  raihrav  ehall 
M  m  aaoimt  equal  to  the  actual  ont-of-pockel  cost  thereof  to  the  contractors  tocethef 

r?JlJ5S^!SS*?'^*?  ^  ?!!'7?i«^  the^original  net  cort  of  all  materialsTplant, 
and  9Wkdfi  nquiMid.  to  Im  iiii}MiitiMi.  fwmi  abroad.    'The  actual  cent  shall  include  ali 

^l  ^^.'^'■■^''"jWffl**^  and  labor,  and  all  expenses, 

l!! J'Z^l!^J^!L^!Jf*!^^^  mcnrred  by  the  coritracton,  providing  panagcs  out  ani 

?i!S!k2L^  '"^^  trtiwwi,  «d  ^nther  troitiim  ^■ptcially  sent  iSr^Eiirope  or 
^^i  '■"*  ??^  «5tPM»  tc'tii;all,y  kmumd  "by  the  ttitf  for  HaveUng  specially  and 
rZ^lS^wi.^*  Tl^  *"■  contract  and  the  actual  cost  of  all  j^anrmaterials. 
ataws,  imcl^tfwla  pnrchased,  according  to  the  cost  price  of  same  delivered  at  the  works 

Jll!!ri!?l!l"f2Jf!i!f  ^"^"^  °^  P**P*  «^  «ii«iise8  •actnally  incurred  by  the  con! 

**^!!!!JSr'Tl^?Ti^*ii^  *?X««"*«n»^  nmmgementa  which  may  be  made  for 
the  supply  of  food,  ,aiid^«tfa«'tliiiiga  :iir  the  con'vwiien:ce  of  the  stafi  employed  by  the 
coiitfacton  on  the:  'wiirki,  including  the  medical  staff,  m^edictnee,  and  the  nec^saxy 

efiupmiini  for  :anii«.  ^ 

Provided,  that  iio  'Coaifeiot,  pbenntract,  engagement  of  ■workmen,,  or  other  obliffa- 
SSil?!!*^  ^l  ^^^  Tt  «»^)f .pocket  expemm  UEUit  be  in  any  way  affected 
■iiau  te  'HBtared  'into  or  made  by  the  ccmtncton,  'without^'  previous  oonient  of  the 
n»na|5m|difecte  ,and  cmifluliiiig^ciigiiiMn,  and  'if  any  ouVof-pocfcet  expenses'  shall 
be  mcimwi,  bj  the  'Coniiactois  iiiiil«r'^,niy  conliact,  subcontract,  ananjremOTt  or  obli- 
gation «*iit«Mi  into^  or"  ,niade:  without  «ch  previous  consent  of  the  manaeinff  director 
wd  the  CMiliiing  eiiMifiers,  eiich  out-of-pocket  expen,8efl  shall,  5the  managinff 
dif  ectof  and  the  'Consulting  enginoets,  think  fit,  be  wholly  or^  to  such  extmtas  the 
™'***^' ^r^!*?*  «l^=^*''^'^8f  wigiiieerB  thiak  fit  disallowed  in  the  contractor's 
•cwuntii,  biit  thii^  .shall  not  awply  lo  the^  mM  .employed  by  the^  contractors  and  the 
■tfiiMr:^  to  them,  which  ahal,!  be  at  the^iiowtion  of  the  'Contractofs.  Provided 
that  ,ti«,  ''Stones  and  ,allOTvaace6  ol  the  European  engineers  and  European  cleriad 
stmff^  otter  liMB,  the  contimc'tore' .agent  tmd  the  prin^pal,  'engineer  under  him  :Bhall 
be^:«ilar'  to^  such  as,  aie^  paid  to  EuiopwiB  in  .other  works  .of  the  same  nature  in  ■China.- 

The  term  "equipment"  shall  be  %id  to  include  in  its  meaning  all  requirements 
necttaary  for  the  ooeration  of  the  railway,  and  shall  therefore  include  rdlinir  stock 
and  Itwmotiv- ao4aen:t,.iif '..openitiiin.  ft  is,  cleKly  undemtood  -that  the  term  ■*Pequip- 

nSri.cn;«Vl^fSSlJ^^  compatJy 

coiwtmctM  and  maipiped  and,  hnded  oyer  ready  for  operation.  It  is  further  clearlv 
undewtood  that  the  cost  of  hind  pufchaned  for  the  railway  and  salaries  of  the  managini 
director  chief  accoimtante,  consulting  enginefiii,  and  the  cost  of  their  offices  amCtaff 
•hmll  Mtwmduded  in 'thf. neameg of  tie^ .■■term  •* constniction ■and  equipment. » ' 

Abt.  XXII.  The  Gofpiniiiit  ihall  at  all  times  keep  the  contractors  in  funds  to 
meet  ejroeiiditure  on  this  contract.  For  the  purpose  of  ascertaining  the  amounts  to 
be^pMd  by  the  GovenuMiit  ti>  lfa«  omtiMlare  from  time  to  time  the  contractore  shall 
lotliss  tfamaevra  days  ImIqdi  IIm  «id  of  Mch  month,  furnish  to  the  engineer  in  chief 
during  cairtnirtian  an  aceoint  ■hewinf  tie  estimated  amount  to  be  expended  on  the 
worki  dmmg  Af  then  ensuing  nMnii,  and  the  Government  shall  on  the  first  day  of 
^i^A  •»*«!?  mjmmt  to  a  bank  to  be  nominated  by  the  contractors  to  the 
owttt  oTlhi  contiactiiii^  the  aniOQiit..>of  Mch,  .ertimftie  togeliier  with  any  balance  then 
d« to lte:.«i^^  ■»•  tkBmiomj  be,  after 

dedwtoig  any  biiknce  then  m  the  hands  of  the  cmtiactofs  and 


APPEimiXES. 


B19 


Art.  XXIII.  The  contractom  shall  have  the  full  and  free  use  of  all  the  railway  and 
works  under  construction  and  the  equipment  as  well  as  all  the  land,  inchidin.^ 
borrow  pits,  quarries,  ballast  pits,  brick  field,  etc.,  required  for  the  purpose  of  the 
railway  sidings,  stations,  buildings,  workshops,  water  supplies,  etc.,  during  the  period 
of  construction  and  shall  hand  over  the  same  on  completion  of  the  railwav. 

The  managing  director  and  engineer  in  chief  d^i^ing  construction  and  their  deputies 
shall  at  all  times  have  access  to  the  works  for  purpoees  of  inspection,  and  they  shall 
l}e  afforded  full  information  r^arding  the  construction  and  works,  and  they  shall 
also  at  all  times  have  access  and  the  r^ht  to  make  copies  of  the  records,  accounts, 
subcontracts,  and  vouchers  kept  in  t^  various  departments  established  by  tlie 
contractore. 

Art.  XXIV.  After  the  completion  of  the  survey  the  Government  may  arrange  with 
the  contractors,  if  the  Government  so  thinks  fit,  for  the  payment  to  the  contractors 
of  a  bonus  or  bonuses  conditional  on  the  construction  and  equipment  of  any  section 
or  sections  of  the  railway  being  completed  within  a  fixed  sum  and  time  to  be  deter- 
mined by  the  Government,  but  this  arrangement  shall  not  entail  any  obligation  on 
the  contractOTs  to  complete  such  section  or  sections  within  a  fixed  sum  or  time  or  any 
penalty  on  the  contractors  should  they  fail  to  complete  such  section  or  sections  within 
a  fixed  sum  or  time. 

Art.  XXV.  The  Government  shall  prevent  anv  interference  with  or  hindrance 
or  molestation  to  the  contractors  and  shall  take  such  precautions  as  may  be  necessary 
for  the  safety  of  the  cootiaetora'  men  and  property; 

Art.  XXVI.  The  property  of  the  contractors'  staff  and  all  miatters  and  peraons  in 
connection  with  the  works  shall  be  protected  by  the  Government,  which  shall  see 
that  the  place  is  at  peace  without  any  organized  hindrance.  In  case  of  any  diflaculty 
as  to  labor  affecting  the  works,  the  Government  shall  use  its  best  endeavor,  in  coop- 
eration with  the  contractors,  in  equitably  adjusting  the  same  and  shall  do  all  in  ixs 
power  to  assist  the  contractors  in  getting  labor  when  required. 

Art.  XXVII.  The  managing  director,  the  engineer  in  chief  during  construction, 
and  *he  contractors'  agent  shaU,  from  time  to  time,  meet  and  confer  upon  any  neces- 
sary matter  in  connection  with  the  execution  of  the  work  and,  acting  harmoniously 
together  in  the  interest  of  their  respective  principals,  shaU  determine  a  mode  of 
operation  and  line  of  action  to  their  mutual  satisfaction,  but  in  case  of  and  as  often 
as  any  difference  or  dispute  concerning  or  relating  to  the  railway  or  the  equipment 
or  to  an}i;hing  appertaining  to  the  carrying  out  of  the  construction  (except  where 
otherwise  provided  for  herein)  shall  arise  the  subject  of  such  difference  or  dispute 
shall  be  at  once  referred  to  the  Government  by  the  complaining  party  and  the  Gov- 
ernment shall  promptly  and  equitably  adjudicate  upon  the  same.  But  should 
either  party  feel  aggrieved  or  be  not  satisfied  by  the  adjudication,  then  the  matter  in 
question  shall  be  at  once  referred  to  two  independent  arbitrators  appointed  by  the 
parties,  who  shall  act  in  accordance  with  the  arbitration  laws  in  force  in  England 
and  who  shall  investigate  and  decide  the  matter  or  matters  equitably.  Should 
they  fail  to  arrive  at  a  unanimous  decision  they  shall  then  refer  the  matter  or  matters 
in  question  at  once  to  the  decision  of  an  umpire  to  be  chosen  and  appointed  by  the 
above-mentioned  arbitrators,  whose  decision  shall  be  final  and  binding  upon  both 
parties  hereto. 

Art.  XXVIII.  The  contractors  shall  make  available  the  temporary  track  while 
under  construction  for  public  traflic  as  far  as  possible  consistent  with  the  require- 
ments of  construction,  and  traffic  carried  over  the  same  shall  be  in  accordance  with  a 
schedule  of  rates  and  terms  to  be  settled  by  the  managing  director.  After  all  expenses 
whatsoever  which  the  chief  accountant  may  allocate  in  connection  with  this  traffic 
have  been  paid  out  of  the  receipts  therefor  the  contractors  shall  receive  one-third  of 
the  remainder. 

Art.  XXIX.  The  contractors  shall  hand  over  to  the  Government  each  section  of 
the  railway  when  it  is,  in  the  opinion  of  the  managing  director  and  engineer  in  chief 
during  constniction,  completed  for  operation  subject  to  the  provisions  of  this  agree- 
ment appertaining  thereto.    On  completion  of  the  survey  the  sections  shall  be 

defined,^ 

Art.  XXX.  The  raHwiy  may  maintain  a  force  of  Chinese  police  and  Chinese 
officws  under  the  orders  of  the  managing  director,  their  wt^es  and  maintenance  to 
be  wholly  defrayed  as  part  of  the  cost  df  the  construction  and  maintenance  of  the 
railway.  In  the  event  of  the  railway  requiring  fmther  protection  by  the  military 
forces  of  the  Government,  the  same  snail  be  duly  applied  for  by  the  head  ofiice  and 
promptly  afforded,  it  being  understood  that  such  military  forces  shall  be  maintained 
at  the  expense  of  the  Government 


320 


0 


m 

1 1 


'RAILWAY  MATERIALS,  'EQUIPMIHT,  AHD  SUFPLIBS. 


AiT.  XXXI.  All  nmterialB  of  any  kind  Ihat  are  required  for  th©  constniction  and 
working  of  tlie  inilway,  whether  imparted  from  abn»d.  or  from  'the  Provinces  to  the 
scene  of  work,  shall  be  exempt  from  likin  or  other  duties  m  long  as  such  exempiion 

remmnj  m  force  m  respect  of  other  Ghiniii©  jmiiwl  .and  future  railways    The  bonds 
c-t  tlie  loan,  together  mith  their  coupons  and  the  income  of  the  railway,  shaU  be  free 
from,  imposts  of  any  kind  by  the  Goverument  of  the  Republic  of  China 
'^f  •  j^XXII.  WitJi  a  liew  t»  encouragi.ng  Chinese  •ind.ustriee,  mils  manufacti.rci 

at  tlie  Hauyang  Steel  A  Iron  W'orka,  native  cement,  wd  other' 'goods  manufacture  i 
aud  produced  in  China  are  to  have  a  preference  at  eq'ual  price  and  quality  'At  e-inl 
rat©B  and  qualities,  goods  of  British  manufacture  shall  be  given  preference  over  other 

foods  of  foreign  oiigin. 

Aiw.  XXXIIL  The  contractoM  may,  with  the  approval  of  the  Government  and 
mhject  to  all  theur  obligations,  tmmim.  or  delegate  all  or  any  of  their  righta,  powers 
and  discretions  to  their  successors  or  tisigns,  provided  they  are  of  British  nationality! 

Art.  aXXIV.  On  the  signing  of  this  agreement  the  Government  of  the  RepubUc 
<»^    Jiinashall  oiicMlly  notify  the  British  Minister  at  Peking  of  the  fact. 

Art.  XXXV.  This  agreement  is  exe€iited  in  quadruplicate  in  EngliBh  and  Chinese 
two  copies  to  be  retained  by  the  Government,  one  to  be  forwarded  to  the  British 
Minister  at  Peking,  and  one  to  be  retained  by  the  contractors.    Should  any  doubt 
anse  as  t»  the  interpretation  of  the  agreement,  the  English  text  shall  be  accepted  as 
tie  standard...  ^ 

Signed:  at  Peking  by  the  contracting  jparties:  on  tliis  25th  day  of  the  seventh  month 
of  the  tiiird  year  of  the  Republic  of  China,  being  the  25th  day  of  July,  nineteen 

.hundred  and  .fourteen.. 

mrmnmoBmrnY  Aemnmrf  pep¥ii>ing  fob  canceixatioh. 

Supplementarv  agreement  providing  for  the  cancelktlon  of  an  agreement  made  oil 
the  I8th  day  of  December,  1913,  between  the  Chiao  tung  Pu,  duly  authorized  by  the 
Ctowrnment  of  the  Republic  of  China,  on  the  one  jpart,  and  Mesars.  Pauling  i  Co. 
(Ltd.),  of  26  Victoria  Street,  London,  S.  W.,  of  the  other  part,  and  for  due  comnensa- 
tion  therefor  to  .MeanB..  PaulingA  Co,  (Ltd.).. 

This,  igfeementji.  made  at  Peking  on  the  26th  day  of  the  eeventh  month  of  the 
tlintl^  year  of  the  Renublic  of  China,  being  the  25th  day  of  July,  1914,  and  the  con- 
ttacting  parties  are  the  Chiao  Tung  Pu,  duly  authorized  by  the  Government  of  the 
Republic  of  China  (hereinafter  referred  to  as  the  Government^  of  the  one  part,  and 
Measw.  PHuling  A  Co.  (Ltil.),  of  26  Victoria  Street,  London,  S.  W.  (hereinalt«  termed 
tlie  contractofB),  of  the  other  part. 

ITierciw  m  agreement  was  made  on  the  I8th  December,  1913,  between  the  Govern- 
ment and  the  contiactors  (hereinafter  termed  the  preliminary  agreement)  for  the 
financing  .and  cons^tniction  of  a  .railway  .from  a  point  on  the  Yangtze  River  oppoeito 
Sham,  ■ma  Changteh,  Yiianchow.,  and  .Kweiyang'  to  Shinwi.  .in  the  'Province  of  ICwei- 
chow,  with  a  branch  line  connecting  Changteh  with  Ciangaha  (hereinafter  called 
the  railway). 

.And  whereaa.  m  .agreement  .has^  'been  entered  into  this  day  between  the  Government 
and  the  contuctew  (hereiniifter  tisrmed  the  detailed  agreement)  providing  for  the 
fi.n.ancing  and  confltructien  of  the  railway. 

Now  it  is  hereby  agreed  by  and  between  the  parties  thereto  as  follows: 

A.BT.  I.  The  :prelimin»ry  ^amement  M.„.hefeby  cancelled,  and  the  contractors  shall 
f eceive  as  compensation  for  the  cancellation  thereof  a  sum  (hereinafter  termed  the 
compenaation)  equal  to  7  per  cent  on  the  actual  cost  of  the  oonstruction  and  equip- 
ment and  maintenance  during  construction  of  the  imilway  less  the  5  per  cent  com- 
miMon  on  miitenala  pufcfaaaed:  abroad  provided  for  in  article  XXI  of  the  detaii^ed 
agreement.  Such,  actual  coat:  shall  include  ail  plant,  'tools,  wages  for  superintondence 
staff,  management,  and  labor  and  all  expensea,  if  any,  which  may  be  actually  incurred 
by  the  contractors  providing  passaoea  out  and  home  for  staff  skiUed  artisans  and 
other  workmen  specially  aent  from  Europe  or  elsewhere  and  any  expenses  actually 
inciirred  by  the  staff  for  traveling  specially  and  exclusively  on  the  work  arranged 
for  m  the  detailed  agreement  and  the  actual  cost  of  «i  plant,  materials,  stores,  and 
tools  puichased,  according  to  the  cost  price  of  the  same  delivered  at  the  works,  and 
also  all  moneya  mid  for  hire  of  phint  and  expenses  actually  incurred  by  the  contractore 
in  connection  with  ajiy  commissariat  afiangementa  which  may  be  made  for  the  supply 
of  food  and  other  things  for  the  convenience  of  the  staff  employed  by  the  contractors 
on  the  works,  including  the  medical  staff,  medicines,  and  the  necessary  equipment 
loraame. 

The  term  "equipment"  shall  be  held  to  include  in  its  meaning  all  reqmrements 
^neceaiary  .for  the  opeution  of  the  railw.ay  and  shall  therefore  include  rolli.of  stock 


APPENDIXES. 


821 


and  locomotive!  sufKaent  for  operation.  It  is  clearly  understood  that  the  term 
equipment     does  not  include  any  purchases  made  for  railway  after  it  has  been 

completely  constnicted  and  equipped  and  handed  over  ready  for  operation.    It  is 

further  clearly  understood  that  the  cost  of  land  purchased  for  the  railway,  the  salaries 
*1  •  o^ector  general    chief  accountants,  and  consulting  engineers,  and  the  cost 

of  theu-  oflices  and  staff  shall  not  be  included  in  the  meaning  of  the  term  "construction 

and  equipment. 

Art  II.  Piye-sevenths  of  the  compensation  of  the  7  per  cent  pro^dded  for  and 
detined  m  Article  I  of  this  agreement  shall  be  paid  to  the  contractors  by  the  Gov- 
ernment immediately  on  the  presentation  of  each  certificate  of  expenditure  simed 
by  the  managing  du-ector,  the  engineer  in  chief  during  construction,  and  the  chief 
accountant,  and  the  balance  (equal  to  two-sevenths  of  the  said  sum)  on  completion 
and  handing  over  of  each  section  of  the  railway  to  which  the  certificate  may  apply. 

Art.  III.  The  Government  hereby  unconditionally  undertakes  to  pay  the  con- 
tractors the  compensation  as  defined  in  Article  I  of  this  agreement  and  in  the  manner 
defined  in  Article  II  of  this  agreement. 

Ar-^  IV.  If  both  parties  to  this  agreement  agree  that  the  section  of  the  railway 
ftom  Kweiyang  to  Shmgyifu  is  impracticable,  the  Government  of  the  Republic  of 
(  hina  undertakes  to  substitute  an  equal  mileage  elsewhere  on  the  same  terms  and 
conditions  as  those  set  forth  in  the  detailed  agreement  and  in  this  agreement 

^^^^\  Y;  9,°  *^®  signing  of  this  agreement  the  Government  shall  officially  notify 
the  Bntish  Minister  at  Peking  of  the  fact.  ' 

Art.  yi.  This  agreement  is  executed  in  quadrupHcate  in  English  and  Chinese 
two  copies  to  be  retained  by  the  Government,  one  to  be  forwarded  to  the  British 
Minister  at  Peking,  and  one  to  be  retained  by  the  contractors.    Should  any  doubt 
anse  as  to  the  interpretation  of  this  agreement,  the  English  text  ehaU  be  accepted 
as  the  standard. 

Signed  at  Peking  by  the  contracting  parties  on  this  25th  day  of  the  seventh  month 
of  the  thn-d  year  of  the  Republic  of  China,  being  the  25th  day  of  July,  nineteen  hun- 
dred and  fourteen.  ^  ^  > 


106228*'— 1&- 


21 


AppiiMii  8.-HUKUANG  RAILWAYS. 

tniAi.  AammoEirr. 

TJis  Mreemeiit  la  made  at  PeMBg  on  the  twenty-second  day  of  the  fourth  month 
of  the  thiid  year  of  the  Emperor  Smian  Timg,  corresponding  to  the  twentieth  day 
of  May,  one  thonnand  nine  hundred  and  ele¥en.  Western  Calendar,  and  the  con- 

tmrting  parties  are: 

Excellency  the  Kung-Pao  Shenff  Hsuan-Huai,  Minister  of  Posts  and  Communi- 


^*.«.gtM»*  ju,i»uauig  vwijorauon,  me  uanque  ae  I'lndo-Utone,  and  Messrs.  J.  P. 
M««n «!  Co    Meem.  Knhn  Loeb  &  Co.,  tte  First  National  Bank,  and  the  National 
aty  Bank,  all  of  New^  York,  conetituting  the  American  Group,  hereinafter  called 
the  "banks,    of  the  other  part,  witoesseth  as  follows: 
Article  I    The  Imperial  Government  of  China  authorizes  the  banks  to  issue  a  5 


Am.  II.  This  loan  is  deeigned  to  provide  capital,  first— 

For  the  redemption  at  a  premium  of  2|  per  cent,  with  accrued  interest,  of  certain 
Mnredeemed  gold  bonda  of  the  total  par  value  of  two  million  two  hundred  akd  twentv- 
tjro  thOTsaijifdolitn  fJnlted  States  currency  (G  $2,222,000)  issued  by  the  American 
Chma  Development  Co.  on  behalf  of  the  Imperial  Chines©  Government,  and  secondly— 

For  the  conatraction  of  a  Government  railway  main  line  from  Wuchang,  the  capital 
of  the  Hupeh  P^o\^nce,  through  Yochow  and  Changaha,  the  capital  of  the  Hunan 
rrownce^,  to  a  point  in  the  district  of  Yichanghsien  in  the  prefecture  of  Chenchow  on 
the  southern  boundary  of  Hunan,  connecting  with  the  Kwangtung  section  of  the 
Canton-Hankow  Railway  line,  the  total  leogth  of  this  line,  hereinafter  known  as 

The  Hupeh-Hunan  Section  of  the  Canton-Hankow  Railway  line."  being  an  esU- 
mated  dMtanoe  of  1,800^  Chineae  li,  or  900  kilometera,  and  of 

A  Government  railway  main  line  from  a  point  at  or  near  Kwangahui  in  the  Province 
of  Hupeh,  oonnecting  with  the  Peking-Hankow  Railway  line  and  pa«ing  throuKh 
Hfflangronfc  and  Chingmenchow  to  Ichang,  an  estimated  distance  of  L  200  Chinese 
li,  or  600  falometeiB,  and  from  Ichang  to  Kweichowf u  in  the  Pro\ince  of  8zechwan. 
an  eetimated  distance  of  600  Chinese  M,  or  300  kilometers— this  latter  section  of  the 
mwn  line having^  been  added  in  substitution  for  the  branch  line  from  Chingmenchow 
to  Hanyangoriginally  MTeed  upon-the  total  length  of  this  main  line,  fiereinafter 

TTJ^^    ^f^^^^  Section  of  the  Szechwan-Hankow  Railway  line,"  being  about 

1,800  Chinese  li,  or  900  kilometers. 

The  8ur\'ey  lines  shall  be  open  to  revision  by  the  Ministry  of  Poeta  and  Communica- 

The  Chinese  Imperial  Government  undertakes  to  call  in,  after  hsLvim  received 
from  the  banks  apnlication  in  writing  to  do  so,  the  aforesaid  gold  bonds,  and  the 
banks  will  apply  the  amount  necessary  for  the  said  redemption  out  of  the  proceeds 
of  the  loan,  and  will  dehver  the  redeemed  bonds  to  the  Chinese  Government  after 

having  made  the  bonds  valueless.  The  Chinese  Imperial  Government  will  aftxjr 
receipt  of^the  redeemed  bonds,  cancel  the  inscription  of  the  pledge  of  the  Canton- 
Hankow  Railway  line  in  their  archives,  and  will  ad\ise  the  banks  in  writing  after 

having  done  this.  ° 

It  is  understood  that  any  surplus  of  the  nominal  amount  of  £500,000  steriing  hereby 
aUotted  for  the  redemption  of  the  gold  bonds  issued  by  the  American  China  I)eveloi>. 
ment  Co. .^aforesaid,  which  may  remain  after  complete  redemption  of  those  bontfe, 
shall  be;  allotted  to  the  above-named  railway  lines.. 

Art.  III.  After  deducrion  of  the  amount  reciuired  for  the  redemption  of  the  gold 
bonds  referred  to  m  Article  II  of  thia  agreement,  the  balance  of  the  loan  proceeds 
shall  be  solely  devoted  to  the  conatruction  of  the  aforesaid  railway  lines,  ipcludinff 
the  purchase  of  land,  rolling  stock,  and  other  equipment,  and  to  the  working  of 
the  lines,  and  to  payment  of  interest  on  the  lofu  during  the  period  of  construction, 

S22 


1 


APPENDIXES. 


823 


which  li  eBtimated  at  three  years  from  the  actual  beginning  of  tfie  works,  a  longer 
period,  however,  being  allowed  for  the  completion  of  the  section  from  Ichang  to 
Kweichowfu  in  consideration  of  the  engineering  difficulties  to  be  encountered.  Work 
shall  be  commenced  simultaneously  at  Wuchang,  Changaha,  Kwangshui,  and  Ichang 
within  SIX  months  after  this  agreement  has  been  signed,  within  which  period  the 
banks  shall  notify  the  Ministry  of  Posts  and  Communications  that  the  sum  of  £600,000 
steriing  has  been  placed  at  its  disposal,  in  case  funds  should, be  required  for  survey 
or  construction  purooses,  or  for  ordering  of  materials,  and  for  ihe  reeiunption  by  the 
Imperial  Chinese  Government  of  the  portion  of  these  lines  already  constructed  by 
the  Provinces  concerned,  the  said  sum  to  be  held  in  Europe  and/or  in  the  United 
States  of  America  or  remitted  to  China  as  the  Ministry  may  direct  as  a  firat  instalment 
on  account  of  the  proceeds  of  the  loan.  This  amount  of  £600,000,  or  whatever  portion 
thereof  is  actually  advanced,  together  with  interest  thereon  at  the  rate  of  6  per  cent 
per  annum,  shall  be  deducted  from  the  first  proceeds  of  the  sale  of  the  bonds. 

It  is  understood  that  the  lines  of  railway  dready  constructed  by  the  two  Provinces 
of  Hupei  and  Hunan  prior  to  the  signature  of  this  agreement  with  capital  provided 
bjj  those  Provinces  themselves,  together  with  the  property  of  those  two  pro\dncial 
railways,  shall  henceforward  be  taken  over  by  and  incorporated  in  the  Canton-Hankow 
and  the  Szechwan-Hankow  Government  Railways  Administrarion,  and  further  that 
any  supplementary  funds  which  may  be  furnished  in  the  future  by  the  Ministry  of 
Posts  and  Communications  on  account  of  a  deficiency  in  the  amount  required  for 
the  construction  of  the  Canton-Hankow  and  Szechwan-Hankow  main  lines  within 
the  boundaries  of  the  two  Provinces  of  Hupeh  and  Hunan,  as  provided  for  in  Article 
XV  of  the  present  agreement,  shall  also  rank  as  capital  of  the  Canton-Hankow  and 
Szechwan-Hankow  Railway  main  lines  within  the  boundaries  of  the  two  Provinces 
aforesaid.  But  the  retimia  due  upon  such  capital  shall  not  in  any  manner  impair 
the  arrangements  for  paj-ment  of  interest  and  repayment  of  principal  of  the  present 
loan.  ' 

Art.  IV.  The  rate  of  interest  for  the  loan  shall  be  5  per  cent  per  annum  on  the 
nominal  principal,  and  shall  be  paid  to  the  bondholders  half-yearly.  The  said  interest 
shall  be  calculated  from  the  date  on  which  the  loan  is  issued  to  the  public,  and  shall 
be  paid  by  the  Imperial  Chinese  Government  during  the  time  of  construction  either 
from  the  proceeds  of  the  loan  or  from  other  sources,  and  afterwards,  in  the  first  place 
out  of  the  revenues  of  the  railways,  and  then  from  such  other  revenues  as  the  Chinese 
Government  may  think  fit  to  use  for  the  purpose,  in  half-yeariy  instahnents  according 
to  the  amounts  specified  in  the  schedule  attached  to  this  agieement,  and  12  days 
before  their  due  dates.  Western  Calendar,  as  calculated  half-yearly  from  the  date  on 
which  the  loan  is  issued  to  the  public. 

Art.  V.  The  term  of  the  loan  shall  be  40  years.  Repayment  of  principal  shall 
commence  after  the  expiry  of  10  years  from  the  date  of  the  loan  and  except  aa  provided 
m  article  VI  hereinafter,  shall  be  made  by  yeariy  amortization  to  the  banks  in  half- 
yearly  mstalments  out  of  the  revenues  of  the  hnes,  or  such  other  revenues  aa  the 
Chinese  Government  may  think  fit  to  use  for  the  purpose,  according  to  the  amounts 
specified  in  the  schedule  attached  to  this  agreement,  but  12  days  before  their  due 
dates,  Western  Calendar,  as  calculated  half-yearly  from  the  date  on  which  the  loan 
IS  issued  to  the  public. 

Art.  VI.  If  at  any  time  after  the  lapse  of  10  years  from  the  date  of  the  loan  the 
Impenal  Chinese  Government  should  desire  to  redeem  the  whole  outstanding  amount 
of  the  loan  or  any  part  of  it  not  yet  due  for  repayment  in  accordance  with  the  schedule 
of  repayment  hereto  attached,  it  may  do  so  up  to  the  end  of  the  seventeenth  year  by 
myment  of  a  premimn  of  2^  per  cent  on  the  face  value  of  the  bonds,  that  is  to  sav  by 
the  pa>Tnent  of  £102  lOs.  for  each  £100  bond,  and  after  the  lapse  of  17  years  wiOiout 
premium:  but  in  each  and  every  case  of  such  extra  redemption  the  Imperial  Chinese 
Government  will  give  six  months  previous  notice  in  writing  to  the  banks  and  such 
redemption  shall  be  effected  by  additional  drawings  of  bonds  to  take  place  on  the 
<late  of  an  Ordmanr  drawing  as  provided  for  in  the  prospectus  of  the  loan. 

^hen  the  loan  has  been  fully  repaid  this  agreement  will  immediately  become  null 
and  void.  Bonds  and  mterest  coupons  which  have  matured  will  be  collected  in  due 
order  and  cancelled  by  the  banks  as  they  are  presented  for  payment  and  will  be 
deUyered  by  them  to  the  Chinese  Ministers  in  Great  Britain,  Germany,  France  and 
the  Umted  States  of  America.  The  banks  will  refund  in  full  to  the  Imperial  Chinese 
Government  the  amounts  of  any  drawn  bonds  and/or  interest  coupons  which  have 
not  been  presented  for  payment  within  30  years  from  the  respective  due  dates  for 
redemption  or  payment  of  interest. 

Art.  VII.  The  half-yemriy  payments  due  for  amortization  and  interest  referred  to 
m  articles  IV  and  V  shall  be  made  in  accordance  with  the  amounts  of  the  schedule 
attached  to  this  agreement^  and  12  daya  before  their  due  dates  aa  fixed  by  articles  IV 


824 


RAILWAY  MATBEIALS,,  EQUIPMBliT,  AHD  SUPPUBS. 


tTLK'i!if 2"*\ f  T  *?  ^¥  ^^^  K^  Minfetry  of  Poets  and  CommunicationB, 
l!li?  tfl  ^^^  ^  ^^J'"^''"  Shanghai  or  in  Hankow.  12  davs  before  the  said  dm 
dates  fiinds.  in  Shanghai  •VKumyiMUi?''  .lyeee  or  Himkow  **Yang-li*'  eycee  and/or 
roi,iiof  the  natwnal  currency  (so  .eoon  at  the  eaid,  currency  ihall  have  been  effectively 
Mtabliihed)  aniicient  to  mee^t  mich  pavments  in  gold  in  Europe  and  the  United  Stati4 
of  Aflaerjca,,  exchange  for  which  ahalf  be  nettled  with  the  banks  on  the  eanie  day, 
tie  Minwtry.of  Poeta  and  ConuntinicttWDs  having,  however,  the  option  of  settlin'* 
txcliing©  with  the  hanks  eimtiltaneotitly  at  any  date  or  dates  within  six  months 
previous  to  any  due  date  for  the  payment  of  interest  and/or  principal.  These 
pa)Tnent8  may,  however  be  made  in  gold  in  Europe  and/or  In  the  United  States  of 
America  12^day»  before  their  due  dates  if  the  Imperiiil  Chinese  Government  should 
happen  to  have  gold  fundi  hima  fide  at  their  disposal  in  Europe  and/or  in  the  United 
States  of  Amenca  not  remitted  from  China  for  the  purpose,  and  desire  so  to  use  them. 

In  reimbuniement  of  expenses  connected  with  the  payment  of  interest  and  repay- 
ment of  pruiapal  of  the  loan  the  banki  will  receive  from  the  Chinese  Government  a 
cumminiion  of  jy>er  cent  on,  the  anmial  loan  service. 

AiT.^  VIII.  The  Imperial  Government  of  Ch„ina  hereby  engages  'that  the  interest 
and  pnncipa  of  this  loan  shall  duly  be  paid  in  full  and  shoulf  the  revenues  of  the 
railwayi  and/or  the  proceeds  of  the  loan  not  be  mifficient  to  provide  for  the  due  and 
full  ,pyiii«nt  of  interest  and  repayment  of  prin,c|pal,  the  Ministry  of  Posts  and  Com- 
miimcalions  Aall  m^emonaliie  the  Throne  and  the  Imperial  Government  of  China 
will  thereupon  make  arrangements  to  ensure  that  the  amount  of  deficiency  shall  he 
met  from  other  wurces  and  handed  over  to  the  banks  on  the  date  upon  which  funds 
«» '""wi'^jwa  to  .«iiiplete  full  payment  of  interest  and  repayment  of  principal. 

Aht  IX.  The  pmmt  loan  of  iS6,0W,000  sterling,  together  with  the  second  series 
thereof,  nrovinon  for  the  issue  of  which  is  made  under  the  terms  of  article  XV  herein- 
after, IS  hereby  secured,  in  respect  to  both  principal  and  interest,  as  a  first  chanre 
upon —  ** 

1.  gupei  genem]  likin  amoiinting  to  2,000.000'  Haikwan  taels  a  year. 

2.  Hupeh  additional  .salt  tax  for  river  defence'  .amonntiiig'  to  400,000  Haikwan  taels' 

•  year,  ^^ 

3 .  Hupeh  new  additional  two-cash  salt  tax  of  September,  190g,  amounting  to  300.000 

Haikwan 'taels  a  year. 

4.  HfPfh  collection   of  Hukuang  interprovincial  tax  on  imported  rice,  to  the 

•mount  of  250,000  Haikwan  ^'taels  a  year. 

5.  Hunan,  geaeral..  likin.  amountiiig  to  2,000,000  Haikwan  taels  a  year. 

6  .Hiinan.  salt  cfniiinsiiioner''B  treasmy  'regular  salt  fiMn.  to  the  amount  of  250.000 

Hai.kwatt.  taels  •  year. 

The  above  nrovinckl  revenues,  amounting  to  a  total  of  5,200,000  Haikwan  taels  a 

ywr,  are  hereby  declared  to  he  free  from  all  other  loans,  chaiges,  or  mortgages. 

^  So  long'  Mi  pnncijial.  and  .interest  of  this,  loan  are  regularly  .paid,  there  sSll  be  no 
Miterference  'With  these  provincial,  revenues;  but  if  principal'  or  interest  of  the  loan 
be  m  default  at  due  date,  then,  after  a  reasonable  period  of  grace,  likin  and  other 
suitable  internal  revenues  of  the  Provinces  of  Hupeh  and  Hunan  sufficient  to  provide 
the  amounts  above  stated  shall  forthwith  be  ttansfened  to  and  administered  by  the 
Imperial  Maritime  Customs  in  the  interests  of  the  bondholders.  And  so  long  as  this 
loan  or  any  part  thereof  shall  remain  unredeemed,  it  shall  have  priority,  both  as 
regards  pnncipal  and  interest,  over  all  future  loans,  chaiges,  and  morteages  charged 
on  the^  aforesaid,  provincial  revenues.  No  .loan,  chaise,  or  morteage  ahiOl  be  rawed 
or  created  whiA  ahai  take  precedence  of  or  be  on  an  equality  wito  this  loan  or  shall 
m  any  manner  lessen  or  impair  its  security  over  the  aforesaid  provincial  revenues 
and  an/  furture  loan,  charge,  or  mortgage  charged  on  the  said  provincial  revenues 
ether  thm  the  second  series  of  the  present  loan  provided  for  in  article  XV  aforemen- 
tioned shall  be  made  subject  to  this  loan,  and  it  shall  he  so  expressed  in  every  agree- 
nient  for  every  such  future  loan,  charge,  or  mortgage.  . 

Afteriredemption  of  the  existing  gold  bonds  referred  to  in  article  II  of  this  agreement 
It  M  understood  and  agreed  that,  so  long  as  this  loan  is  unredeemed,  the  railways  shall, 
under  no  cireumstances,  be  mortgaged  nor  then-  receipts  given  as  security  to  any 
otn.er  party. 

In  the  event  of  the  Chinese  Government,  during  the  currency  of  this  loan,  entering 
upon  definite  arrangements  for  the  revision  of  the  Customs  tariff,  accompanied  1^ 
Btipalations  for  the  decresae  or  abolition  of  likin,  it  is  herehv  agreed,  on  the  one  hand. 
that  such  reyMMin  shall  not  he  barred  by  the  fact  that  this  loan  is  secured  by  likin 
and  provincial  revenues,  and,  on  the  other  hand,  that  whatever  likin  is  required  to 
provide  the  security  of  this  loan  shall  neither  be  decreased  nor  abolished  except  by 
previous  arrangement  with  the  banks  and  then  only  in  so  far  as  an  equivalent  ilsub- 
stituted  lor  it  in  the  shape  of  a  int  chaise  upon  the  increase  of  customs  revenue 
consequent  upon  such  revision. 


APPENDIXES. 


325 


Akt.  X.  The  banks  are  hereby  authorized  to  issue  to  the  8ubscriT)ers  to  the  loan 
bonds  for  the  total  amount  of  the  loan  in  gold,  for  such  amounts  as  may  appear  advisable 
to  the  banks.  The  form  and  language  of  the  bonds  shall  be  settled  by  the  banks  in 
consultation  with  the  Mmistry  of  Posts  and  Communications  or  the  Chinese  Minister 
*^  Ju  ml"'  If  ndon.  Pans,  or  Washington:  they  shall  bear  the  facsimile  of  the  signature 
of  the  Minister  of  Posts  and  Communications  and  of  his  seal  of  office,  in  order  to  dispense 
with  the  necessity  of  signing  them  all  in  person,  and  the  Chinese  Minister  in  Berlin 
and/or  London  and/or  Paris  and/or  Washington,  at  the  option  of  the  banks  shall, 
previous  to  the  issue  of  the  bonds,  put  his  seal  upon  each  bond,  with  a  facsimile  of 
his  signature,  as  a  proof  that  the  issue  and  sale  of  the  bonds  are  duly  authorized  by 
and  binding  upon  the  Imperial  Chinese  Government.  The  representatives  of  the 
S?"^^  ^  J  Berlin,  London,  Paris,  or  New  York,  as  the  case  may  be,  shall  countersign 
the  bonds  as  agents  for  the  issue  of  the  loan. 

In  the  event  of  any  bond  or  bonds  issued  for  this  loan  being  lost,  stolen,  or  destroyed, 
the  group  and/or  bank  or  banks  concerned  shall  immediately  notify  the  Ministry  of 
Posts  and  Communications  and  the  Chinese  Minister  in  Berlin,  London,  Paris  or 
Washington,  as  the  case  may  be,  who  shall  authorize  the  group  and/or  bank  or  banks 
concerned  to  insert  an  advertisement  in  the  public  newspapers  notifying  that  pajrment 
of  such  bond  or  bonds  has  been  stopped,  and  to  take  such  other  steps  as  may  appear 
advisable  or  necessary  according  to  the  laws  and  customs  of  the  country  concerned 
and  should  any  bond  or  bonds  be  destroyed  or  should  such  lost  or  stolen  bond  or  bonds 
not  he  recovered  after  a  lapse  of  time  to  be  fixed  by  the  group  and/or  bank  or  banks 
concerned  the  Chinese  Minister  in  Berlin,  London,  Paris,  or  Washington,  as  the  case 
""^/i?^®' J  ^*'^  ^^^  ^^^  execute  a  duplicate  bond  or  duplicate  bonds  for  a  like  amount 
and  hand  the  same  to  the  group  and/or  bank  or  banks  representing  the  owner  or  owners 
of  such  lost,  stolen,  or  destroyed  bond  or  bonds  which  group  and/or  bank  or  banks 
shall  pay  all  expenses  in  connection  with  such  delivery  and  execution  of  such  bond 
or  bonds  for  the  account  of  the  owner  or  owners  of  such  bond  or  bonds. 

Art  XL  All  bonds  and  coupons  and  payments  made  and  received  in  connection 
with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes  and  imposts  during 
the  currency  of  this  loan. 

Art.  XII.  All  details  necessary  for  the  prospectus  and  connected  with  the  payment 
*^-l  51^^^,?®^  ^^^  repayment  of  the  principal  of  this  loan,  not  herein  explicitly  pro- 
vided for,  shall  be  left  to  the  arrangement  of  the  banks  in  consultation  with  the  Chinese 
Mm isters  in  Berlin,  London,  Paris,  and  Washington.  The  banks  are  hereby  authorized 
to  issue  the  prospectus  of  the  loan  as  soon  as  possible  after  the  signing  of  tliis  agreement* 
and  the  Imperial  Government  will  instruct  the  Chinese  Ministers  in  Berlin,  London 
Pans,  and  Washington  to  cooperate  with  the  banks  in  any  matters  requiring  conjoint 
action,  and  to  sign  the  prospectus  of  the  loan. 

Art.  XIII.  This  loan  of  £6,000,000  steriing  shall  be  issued  to  the  public  in  one 
amount  as  soon  as  possible  after  the  signature  of  this  agreement,  and  not  later  than  12 
months  from  the  date  thereof.  The  price  of  the  bonds  to  the  Imperial  Chinese  Govern- 
ment shall  be  95  per  cent  of  their  nominal  value.  Subscriptions  will  be  invited  bv  the 
banks  in  Europe,  in  the  United  States  of  America,  and  in  China  from  Chinese  Euro- 
^fT^'n^-  ^™«''^^*ii8  on  equal  conditions,  preference  being  given  to  the  application 
of  the  Chinese  Government,  provided  such  application  be  made  not  less  than  four  days 
before  the  issue  of  the  prospectus  to  the  public.  Seven  days '  notice  of  the  issue  of  the 
proepecUis  Will  be  given  by  the  banks  to  the  Imperial  Chinese  Government. 

Art.  XIV.  The  proceeds  of  the  loan  shall  be  placed  to  the  credit  of  a  ''Hukuang 
Government  Railways  Account"  with  the  Deutsch-Asiatische  Bank,  the  Hongkong  & 
Shanghai  Banking  Corporation,  and  the  Banque  de  I'lndo-Chine  in  China  BerUn 
London,  or  Paris,  as  the  case  may  bCj  and  with  the  American  Group  in  New  York  or 
such  banks  in  China  as  from  time  to  time  shall  be  designated  by  the  American  Group 
the  International  Banking  Corporation  being  now  so  designated.  Payments  of  the 
loan  proceeds  into  the  credit  of  this  account  shall  be  made  in  installments  and  on  dates 
conforming  to  the  conditions  allowed  to  the  subscribers  to  the  loan. 

Interest  at  the  rate  of  3  per  cent  per  annum  shall  be  granted  on  the  credit  balance  of 
the  portion  of  this  account  kept  in  Berlin,  London,  Paris,  or  New  York,  and  interest 
on  the  credit  portion  kept  m  China  by  the  above  banks  will  be  allowed  at  the  banks' 
rate  for  current  accounts  to  be  arranged. 

Subject  to  the  pa>Tnents  and  deductions  to  be  made  from  the  loan  proceeds  in  terms 
of  articles  II  and  III  of  this  agreement  the  banks  will  hold  the  net  balance  with  accrued 
interest  to  the  order  of  the  Ministry  of  Posts  and  Communications. 

Tranters  of  the  loan  funds  to  China  in  amounts  not  exceeding  £200,000  sterling  trans- 
ferred in  any  one  week,  will  be  made  by  the  Ministry  of  Posts  and  Communications  at 
Its  discretion,  the  transfers  being  effected  through  the  Deutsch-Asiatische  Bank  the 
Hongkong  &  Shanghai  Banking  Corporation,  the  Banque  de  I'lndo-Chine  and/or  tho 


I 


326 


ItAILV/AT  MATERIAIS,   E:1ITTPJ,IIvXT,  Am)  SVVVlArS, 


Imnlc  or  'teaks  to  be  des.igiiatad  by  Htm  Americun.  GfDup,  tlw  Inteimaiiiiiial  Banking 

Coroocation,  'being'  now  so  deiipiatod,, 

Tmnifeta.  of  tie  loan  funds  to  Ohioji  from  the  banks  in  Europe  and  America,  and 
transfers  from  the  'banks  in  Gbina.  to  the  Cblneee  banks  wMcb  aro lierelnaf ter  desifnated 

almll  be  made  m  neailj  as^  pnasiblein  ec|ual  amouoto  from  each  of  the  banks,  tne  rate 
of  excliange  for  each  transfer  from  'Europe  and  Am^erica  being  settled  simultaneously 
with  the  transferrinf  banfa  either  on  the  day  on  which  such  transfer  is  to  be  made,  or  at 
the  option,  of  the  Mmwtry  of  Post*  and  CommunicatiO'ius,  on  any  date,  or  dates  within 
six  months  preYious  to  the  day  on  which  Hm  tensfer  is  to  be^  niade.  In  the  event  of 
eqmkl  transfers  being  found  to  'be  impracticable,  a  mutually  satiafactory  Brocedure  tor 
making  the  tensfers  above  referred  to  shall  be  arranged,  between  'the  :Min.iitiry  of  Po^ts 
and  CommunicatlonB  and  the  banks. 

The  transferred,  .funds,  to  the  extent  of  one-half  of  the  net  balance  of  the  loan  proceeds 
above  referred  to,  may.,  at  the  discretion  of  the  'l.Iiniatry  of  Posts,  and  Communication's^ 

banks 

for 

.     ,. , ._  ,      _      ^ ,  . reaponsiblo 

for  all  the  funds  of  thus  loan  deposited  with  the  .said  C'hi..Eese  'banks. 

The  Ministry  of  Posts  and  Com.mun.i.t!a.tions  slmll  from  time  to  time  make  transfers 
from  the  loan  funds  held  in  China  by  the  banks  and  by  the  designated  0.hine8e  banks, 
to  the  credit  of  a  construction  account  for  the  I'Iui»eh  .section  of  the  Szech wan-Hankow 
Hallway  Line  with  the  D'eiitsch-.iaiatische  llank  and.  of  a  confl.tnict»n  account  for 
ike  Hupei-H'unan  section  of  the  Canton-Hankow  Railway  Line  with  the  Hongkong 
and  .Shanghai  BanM,ng  Corporation,  in  amounts  sufficient  to  cover  one  month's  con- 
■struction  eslimatos  in  advance,  so  as  to  i,nsuro  the  uninterrupted  continuance  of 
construction.  The  Min'lstry  of  Posts  and  Communications  shall  Iiaiid  to  the  banks., 
for  ibe  information  of  the  auditors  ('h.ereinaft4sr  referred  to),  c^^uarterly  statements  ot 
the  loan,  funds  held,  on  depoait  by  the  .aforesaid  designated  Chinese  banks,  and  these 
funds  shall  not  he  withdrawn  from  the  :8aid  banks  except  for  the  puipoae  of  transfer 
to  the  construction  accounts  above  nam^ed.  Funds  shall  he  .dra.wn  from  these  con- 
.itruction  accounts,  in  sycee  'by  the  managing'  director  .as  hereinafter  pro\ided,  and 
it  will  reit-with  the  ■managi.:ng  director  under  the  instructions  of  theMinistiy  of  .Posts 
and  'Communiaitlotf.  to.,  nuike.  all  neceasary  arrangements  for  the  distiibution  el  sueh 
.funds  throiigli.  Chinea©  banjks  or  othern^iae  to  the  points  where  they  are  required. 

Boquisitions  upon  these  construction  accounts  will  be  drawn  in  .amounts,  to  suit 
the  progfOSB'  of  construction  of  the  railway  lines  by  orders  upon  the  D.eutach-.Asiati8che 
Bank  or  the  Hongkong  A  .Shanghai  Banking  Corporation  signed  by  the  managing 
director  of  the  lines  concerned  or,  in  his  absence;  by  liia  d.u,iy  authorized  representa- 
tive, who  .shall  moreover,  two  days  prev.iou.s  to  the  presenta.t.ion  of  such  order,  iaeue 
in  dupH'Cate  a  certificate  stating  cliarly  the  o'bject  for  which  the  fund*  are  to  lie 
dra.wn.„  .ha.nding  one  copy  to  the  auditor  conremed  ('hereinafter  referred  to)  and  on© 
copy  to  'the  bank,  concerned.  If  the  auditor  should  find  timt  there  ue  irregukrities. 
in  til©  payments  to  be  made,  'he  m,ay  in  the  first  place  ask  the  managing  d.irector  for 
specific  explanations,  and  if  the  maEagi.iig  director  is  unable  to  furnish  definite 
ex|>lanation!^,  the  auditor  may  refer  the  matter  to  the  Ministry  of  Posts  and.  Communi- 
.cations  .for  its  instructions. 

The  accounts  of  the.  ra.ilway8  shall  be  kept  in  Chines©  and  English  in  accordance 
with  accepted  modern  methods,  and  will  he  supported  by  all  necessary  vouchers, 
Buring  the  period  of  construction  the  .said  accounts  and  vouchera  will  be  open  at 
any  time  to  the  inspection  of  two  auditors  for  the  Hupeh-H'unan  aection  of  the  (Sinton- 
.Hankow  Rai.Iway  Line,  and  the  H'upeh  .section  of  the  Szochwan-Hankow  'Railway 
Line,  reapectively,  appointed  and  paid  by  the  bante,  whose,  duty  it  will  be  to  8a.tL>j.iy 
the  banks  as  to  the  due  expenditure  of  the  loan  funds  in  accordance  with  the  pro- 
visions: of  article  III  of  this  agroement.  .and  to^  certify  to^  monthly  state.ments  of  tlie 
foreign  materials  purchased  by  tlie  Rai.lway  Ad.ministm.tion  under  the  provis.ion8  of 
art.icle  XVLII  hereinafter.  The  Railway  Ad.min.i8tra.tion  will  publish  annuallv  upon 
the  close ^of  Its  fi.naECial  year  a  report  in  the  Chinese  and  English  languages,  sfiowing' 
th.e  working  accounts  and  traffic  receipts  of  'tlie  railways,  which  report  shall  be  pro- 
curable by  the  public  on  .application.. 

Abt:.  XV.  If  after  the  d'eduction  of  the  amount  required  for  the  redemption  of  the 
gold  Iwnds  referred  to  in  article  II  of  this  agreement,  and  of  the  sums  necessary  for 
the  service  of  interest  on  the  loan  during  the  time  of  conatruction,  the  balance  of  the 
loan  proceeda,  with  accrued  interest,  should  not  b©  suflicient  to  complete  the  con- 
struction and  equipment  of  the  r%ilway  lines  named  in  article  II  of  this  agreement, 
the  amount  of  deficiency  shall  b®  provided,  in  the  first  phice,  from  such  Chinese 
funds  m  may  be  available  so  as  to  permit  of  the  uninterrupted  continuance  of  the  work 
of  conMnictlon,  and  any  balance  then  uncovered  shall  be  supplemented  by  the  issue 


APPENDIXES. 


S27 


by  the  banks  under  the  terms  of  the  present  agreement,  of  a  second  series  of  the 
^ifT  u*  "*^^^'  ^5^  an  amount  not  exceeding  £4,000.000  eterling.  This  second  series 
shall  be  secured  pan  passu  as  an  equal  charge  in  every  respect  on  the  internal  reve- 
nues specified  m  article  IX  of  this  agreement,  and  the  time  of  its  issue  shall  be  left 
to  the  di«;retion  of  the  banks.  Should  foreign  capital  still  be  required  for  the  com- 
pletion of  the  railway  lines  aforesaid  it  shall  be  provided  by  a  further  loan  to  be 
issued  by  tlie  baidcs  on  terms  to  be  arranged.  If  after  the  completion  of  the  lines 
tHere  should  be  a  balance  at  the  credit  of  the  railways  account,  such  unused  balance 
wiJl  he  toansf erred  to  the  credit  of  the  interest  reeerve  fund,  hereinafter  mentioned  in 
article  aX  as  a  pro^Tsion  for  payments  for  which  the  Imperial  Chinese  Government 
18  responsible  under  this  agreement,  or  will  be  devoted,  if  necessary,  to  the  improve- 
ment of  these  railways  or  otherwise  to  their  advantage. 

Art.  XVI.  If  before  the  publication  of  the  prospectus  for  the  issue  of  the  loan  any 
political  or  financial  crisis  should  take  place  by  which  the  markets  and  the  prices  of 
existing  Chinese  Government  stocks  are  so  affected  as  to  render,  in  the  opinion  of  the 
Jjanka,  the  successful  issue  of  this  loan  impossible  on  the  terms  herein  named,  the 
banks  shall  be  granted  a  reasonable  extension  of  time  for  the  pCTfonnance  of  their 
contract.  If  within  this  time  limit,  to  be  arranged,  the  loan  shall  not  have  been 
issued,  then  this  contract  shall  become  null  and  void,  and  any  advances  made  by 
the  banks  under  the  provisions  of  article  III  of  this  agreement,  shall  be  repaid  by  the 
Chinese  Government  with  accrued  interest,  but  without  any  other  compensation  or 
remuneration  whatsoever. 

Art.  XVII.  The  construction  and  control  of  the  railway  lines  shall  be  entirely 
and  exclusively  vested  in  the  Imperial  Chinese  Government-    For  the  work  of  con- 
Btruction  the  Imperial  Chinese  Government  will  select  for  appointment  a  fully  quali- 
fied British  engineer  m  chief  for  the  Hupeh-Hunan  section  of  the  Canton-Hankow 
railway  line  from  Wuchang  to  Yichanghsien,  and  a  fully  qualified  German  en<rijieer 
in  chief  for  the  Kwangshui-Ichang  section  of  the  Szechwan-Hankow  railway  line 
with  a  fully  qualified  American  engineer  in  chief  for  the  section  of  that  line  from 
Ichang  to  Kweichowfu,  at  the  same  time  informing  the  banks  of  the  selection  made 
If  the  banks  have  objections  to  offer  against  the  engineers  in  chief  thus  selected  for 
appointment,  they  shall,  in  stating  their  objections,  give  definite  reasons  therefor 
The  said  engineers  in  chief  shall  be  imder  the  orders  of  the  director  general  and  the 
managing  du-ectors  of  the  respective  lines  or,  in  their  absence,  of  their  duly  authorized 
representatives,  and  will  carry  out  all  the  Ti-ishes  of  the  Ministry  of  Posts  and  Com- 
munications with  regard  to  the  plan  and  construction  of  the  lines.    In  {heir  general  ' 
conduct  they  shall  pay  all  due  respect  to  the  Ministry  of  Posts  and  Commimications 
the  director  general,  and  the  managing  directors.    The  terms  of  their  respective 
agreements  will  be  arranged  by  the  lilinistry  of  Posts  and  Communications 

Whenever  appointments  are  to  be  made  or  functions  defined  of  the  technical  mem- 
bers of  the  railway  staff,  as  well  as  in  the  case  of  their  dismissal,  the  director  general 
the  managing  director  or,  in  his  absence,  his  duly  authorized  representative  will  act 
m  consultation  with  the  engineer  in  chief  concerned,  and  in  the  case  of  disagreement 
the  matter  will  be  referred  to  the  Ministry  of  Posts  and  Communications,  whose 
decision  shall  be  final.  * 

After  completion  of  construction,  and  dtuing  the  currency  of  this  loan,  the  Imperial 
Chinese  Govenunent  will  continue  to  employ  Europeans  and/or  Americans  as  engi- 
neera  m  chief  of  the  said  railway  lines,  these  appointments  being  made  without 

Art.  Xyill  For  the  Hupeh-Hunan  section  of  the  Canton-Hankow  railway  line 
and  the  Hupeh  section  of  the  Szechwan-Hankow  railway  line,  respectively,  (a)  The 
British  &  ehmese  Corporation  (Ltd.),  and  (6)  the  Deutsch-Aeiatische  Bank  will  act 
as  agents  of  the  Railway  Administration  during  construction  for  the  purchase  of  all 
material,  plant,  and  goods  required  to  be  imported  from  abroad.  From  this  catesorv 
rails  and  their  accessories  are  excepted;  for  the  purchase  of  which  the  Minist^  6f 
Poets  and  Communications  has  memorialiy.ed  the  Throne,  recommending  that  they 
should  be  manufactured  and  supplied  by  the  Hanyang  Iron  W^orks.  Their  price  will 
he  setUed  by  the  Ministry  of  Posts  and  Communications  with  the  Hanyang  Iron  Works 
after  comparison  with  the  current  quotations  for  rails  purchased  by  other  lines  from 
liurope  or  America.  No  delay  iiill  be  allowed,  and  it  is  understood  that  if  the  Han- 
yang Iron  Works  are  unable  to  supply  the  requirements  of  the  lines  in  question  in 
such  manner  as  to  insure  uninterrupted  construction,  the  purchasing  agents  \\ill  be 
instructed  to  procure  from  abroad  the  additional  supplies  required.  For  aU  impor- 
tant purchases  of  materials  tenders  shall  be  caUed  for  by  the  director  general  or  the 
managing  director  concerned;  in  the  case  of  all  tenders,  indents,  and  orders  for  the 
importation  of  goods  and  materials  from  abroad,  the  said  agents  shall  purchase  the 
materials  requu-ed  on  the  terms  moat  ad\'antageous  to  the  railways,  and  shall  chame 
the  original  net  cost  of  the  same,  plus  a  commiraon  of  5  per  cent.    It  is  understood 


t         i 


■'BAttWAY  MATERIALS,  BQ'FIP'MENT,  A'HD  SUPPLIES. 

that  no  ordem  for  matermls  eliall  h%  executed  or  tmr  expenditure  incurred  without 
due  authoristiitioii  by  the  mftnaging  director  concerned. 

In  return  for  payment  of  commifision  m  above  stated  the  Britliih  &  Chinese  Corpo- 
wtion  (Ltd..)  and  'the  Deutsch-AsiatiBclie  Bank'-ie  agenlB  for  the  rafpective  railway 
linee,  shall  be  prepuMl  to  luperintend  the  pnichaB©  of  til  foreign  materialB  required 
for  their  conatructwn  and  equipment,  which  ehall  be  purchased  in  the  open  market 
at  the  lowest  rate  obtMimble,  it  being  understood  tliat  all  such  materials  shall  be  of 
.jIocMi  and  aatisliictory  quiKty  and  'that  the  afoiwwd  agents  will  avail  themselves  of 
the  iervic»  «>l  enpneering  experts  to  be  selectud  by  the  Minifltry  of  Posts  and  Cora- 
miinications  for  the  inspection  of  such  matedWi.  file  fees  of  these  inspectors  shall 
be  borne  in  equal  shares  by  th©  Ministry  of  Posts  md  Communications  and  the  pur- 
chasing agents.  At  equal  rates  and  qnalitifis  eoods  of  British,  French,  German,  and 
American  mannfacture  shall  'be  given  impartial  preleronce  over  other  goods  of  foreign 
O'rigin.  The  Kailway  Administration  of  the  Ministry  of  Posts  and  Communications 
reeerv»  the  right,  wnile  pnying  the  above  stipnlated  commission  to  the  said  agents 
in  respect  of  all  purchases'  of  foreign  materiab,  to  avail  itself  of  the  services  of  other 
:agente  in  China,  or  abroad,,  ihoold  it  see  fit  to  do  so. 

The  most  favowble  shinping  and  insurance  rates  are  to  be  'Secured  and  statements 
thereof  together  with  original  invoices  and  inspectors'  certificates  are  to  be  submitted 
to  the  director  general,  and  the  manairing'  director  concerned;  all  return  commissions 
and  rebates  of  every  description  Bhall  he  cfed.ited,  to  the  railwavs,  and  all  purchases 
made  by  the  agents  on  behalf  of  the  ■railwiyi  shall  be  supported  by  manufacturers^ 
original  invoices  and  Insp^ectors*  certificatw.  No  commission  shall  be  paid  to  the 
agents  except  as  above  provided;  but  it  is  und:enit«»d  that  the  Railway  Administra- 
tion shall  provide  out  of  milway  hinds  for  the  femunefation  of  consu,lting  engineers 
whenever  their  services  are  engaged. 

With  a  mew  U  the  encouragement  of  Chinese  industries,,  preference  will  be  given, 
■t  equal  pric«  and  qualities,  over  British.  French.  German,  American,  or  other  for- 
mm  goods  to  (Mnesc  :ina;teriiil8  and  goods  manufactured  in  China,,  such  cases  being 
left  to  the  decision,,  in  conssltation  'with  the ''eunneerS'  in, chief,  of  an  inspector  ap- 
pointed by  the  Minintrv  of  Posts  and  Communications.  No  commission  wfflbe  paid 
on  purchaaee  of  such  Chinese^  materials' and  goods. 

It  is  understood  and  apeed  that,  aftof  the  construction  of  the  lines  is  completed, 
the  British  &  Chinese  Oorponition  (Ltd.)  and  the  Bentech-Asiatische  Bank  will  be 
given  the  prefeience  for  agency  business  lor  the  respective  lines,  during  the  currency 
of  the  loan,  for  the  supply  of  foreign  msteiials  which  the  Railway  Administration 
,iaay  recpire,  on  terms  to  be  hereafter  ,niitiitiy  :apeed  upon. 

,A«T.  X,I„X.  Should  the  Imperial  Chines©  'Gmwiiiiient' itself  hereafter  consider  it 
desirable  to  construct  extensions  in  connection  with  the  railway  lines  named  in 
article  II  of  this  HipMiiient  in  order  that  the  interests  of  the  country  may  be  bettor 
served,  such,  eX:ten8ionfl:  shall  he  built  by  the  Imperial,  Chinese  Government  with 
funds  al  its  disposal  from  ChiU'Cae'  sources,  but  if  foieini,  capital  is  required,  and  the 
torms  oiered  by  the  banks  are  as  favorable  as  those  oiered  by  others  preference  will 
he  given  to  the  banks. 

Abt.  XX.  After  payment  of  interest  and  repayment  of  principal  of  this  loan  for 
any  current  year,  the  Raflway  ,Adnilnistration  will  deposit  with  the  banks  in 
Shanghai,  or  Hankow  .any  surplus  of  th,e  net  ,revenue  of  the'wiway  lines  ,for  that  year 
up  to  the  amount  required  to  pay  the  following  year's  installments  of  interest  on  the 
loan,  the  ratoi  of  interest  on  the  deposit  being  arranged  with  the  banks  from  time  to 
tine  wi,th,  due  ;reprd  to  the  conditions  of  the  market. 

Abt.  XXL  All  expenses  in  connection  with  the  flotation  and  issue  of  this  loan, 
such  as  underwriting,  commission  and  brokerage,  tel^raph  chaises,  advertising, 
postage,  engrmving  and  printing  of  prospectus  and  bonds,  stamp  and  legal  fees,  shul 
be  borne  by  the  banks, 

,AiiT.  XXIL  The  Deutsch-Aiiatische  Bank,  the  Hongkong  &  Shanghai  Banking 
Corporation,  the  Banque  de  I'Indo-Chine,  and  the  American  Group  &dl  take  the 
loan  in  'equal  .shares  and  without,  responsibilitv  for  each  other. 

Abt.  XXiii.  'The  Deiit8ch-A.sia.tische  Bank,  the  Hongkong  &  Shanghai  B.an,king 
Corporation,  the  Banque  de  .I'Indo-Chine,  .and  the  American  Group  may,  subject  to 
all  their  obligations  under  this  agreement,  transfer  or  delegate  all  or  any  of  their  rights, 
powers,  and  discretions  .hereunoer  to  any  German,  Britiah,  French,  or  American  com- 
pany, directors,  or  agents,  with  power  of  liurther  tiioiiler  and  subdelegation;  such 
transfer,  subtraiisfer,  delegation,  m  mhdelegttion  to  'he  subject  to,  the  approval  of  the 
Ministry  of  ,PoBts  ,and  'Communicationsi.  .  1 1 

Art.  XXiV.  Thia^  agreement  is  signed  under  the  authori,ty  of  an  imperial  ed,ict 
dated  the  twenty-second  day  of  the  lonrth  ,month  of  the  third  yeai  of  the  Emperor 
Bman  Tung,,  conesponding  to  the  twentieth,  'day  of  May,  1,911,  Western  Calendar, 


APPENDIXES. 


829 


which  will  be  officially  communicated  to  the  Ministers  of  Great  Britain,  France,  Ger- 
many, and  the  United  States  of  America  in  Peking  by  the  Waiwupu. 

Art.  XXV.  Eight  sets  of  this  agreement  are  executed  in  English  and  Chinese,  four 
sets  to  be  retained  by  the  Imperial  Chinese  Government  and  lour  sets  by  the  banks. 
In  the  event  of  any  doubt  arising  regarding  the  interpretation  of  the  contract  tho 
Eli^lish  text  shall  rule. 

Signetl  at  Peking  by  the  contracting  parties  this  twenty-second  day  of  the  fourth 
month  of  the  third  year  of  the  Emperor  Hsiian  Tung,  corresponding  to  the  twentieth 
day  of  May,  one  thousand  nine  hundred  and  eleven,  Western  Calendar. 

The  Minister  of  Posts  and  Communications, 

Bheno  Hsuan-Huai. 

For  the  Deutach-Asiatische  Bank, 

H.   CORDBS, 

For  the  Hongkong  &  Shanghai  Banking  Corporation, 


Banque  de  I'Indo-Chine, 

For  J.  P.  Morgan  &  Co., 
Kuhn,  Loeb  &  Co., 
The  First  National  Bar.k, 
The  National  City  Bank, 
of  New  York, 
constituting 
"The  American  Group," 


E.  G.  Hn.LiER, 

Agent* 

R.  Saint  Pierre  Casenayb* 


Willaub  Straight, 

Representaitm, 


DISPATCH  TBOM  THE  MHHSTEB  OF  COMMIOTICATIOHS. 

Peking,  Mardi  1,  191S* 
To  the  Representatives  of 

The  Deutsch-Asiatische  Bank, 

The  Hongkong  &  Shanghai  Banking  Corporation, 

The  Banque  de  I'Indo-Chine, 

and  The  American  Group. 

Gentlemen:  I  duly  received  the  letter  of  the  representatives,  dated  the  11th  of 
July  last,  in  which  were  submitted  four  points  for  discussion.  I  beg  to  state  that  fre- 
quent discussions  have  already  taken  place  and  that  nearly  half  a  year  has  elapsed 
smce  our  joint  discussion  of  the  28th  of  September.  A  solution  has  not  yet  been 
arrived  at.  Construction  work  is  in  abeyance  for  lack  of  funds.  Both  parties  agree 
that  no  further  delay  should  occur. 

We  have  mutually  agreed  that  this  Ministry  shall  address  a  dispatoh  to  you  setting 
forth  a  method  of  procedure  and  I  would  request  that  you  will  assent  thereto  and 
favor  us  with  a  reply  so  that  funds  to  meet  requirements  may  be  speedily  made 
available. 

The  method  of  procedure  decided  upon,  under  four  headings,  is  as  follows: 

1.  It  has  already  been  arranged  that  the  Szechwan  Commercial  Railway  sliaU  be 
taken  over  and  operated  by  the  Government.  The  Commercial  RaUway  line  of  the 
Canton-Hankow  Railway  in  Hunan  has  already  been  taken  over  by  Director  General 
Huang  in  Hunan.  The  surv'ey  of  the  Canton-Hankow  Railway  in  Hupeh  is  nearing 
completion  and  arrangements  nave  been  made  for  commencing  work  at  the  Wuchang 
end.  The  German  engineer  in  chief  and  the  American  engineer  in  chief  have  already 
been  appointed  and  before  many  days  will  proceed  to  make  the  survey  of  their  respec- 
tive sections.  The  above  may  all  be  considered  as  a  simultaneous  commencement 
of  work  on  the  four  railway  lines. 

2.  According  to  the  terms  of  article  14  of  the  loan  agreement  one-half  of  the  proceeds 
of  the  loan  funds  transferred  to  China  shall  be  deposited  with  the  Chiao-Tung  Bank  or 
with  Ta-Ching  Bank.  It  is  now  agreed  that  the  funds  transferred  to  China  sliall  b*e 
temporarily  deposited  with  the  Deutsch-Asiatische  Bank,  the  Hongkong  &  Shanghai 
Banking  Corporation,  the  Banque  de  Plndo-Chine,  and  the  International  Banking 
Corporation,  designated  by  the  American  Group,  in  readiness  to  be  drawn  upon  from 
time  to  time  as  required  for  the  work  until  such  time  as  either  the  Chiao-Tung  Bank 
or  the  Ta-Ching  Bank  has  been  leoiganized  as  the  State  Bank  of  China  and  has  estab- 


■RAILWAY  MATERIAM,  ,„BQ,FIPMENT,  AFD  SUPPLIES. 

lialirf,  ite  credit,  and  b'uaiaeas  nlslmii,  mtli  fo»%ii  bsnka  have  been  mutually 
resumed.  ^Wheii  guch  time  comei  tli*-  CkivwameEt  may  conailt  witk  the  gronm  aa; 
to  a  reyeraion  to  the  metliod  of  procedure  lsicl.4iowii  in  .article  14  el  tlie  loiit  affreement ' 
fel  n  ^  ?^  depoflte  of  the  procecdi  of  the  loan  fundi  dmU  be  shared  with  the  CMao- 
TtiogJJank  or  the  htate  .B:aiiit  of  China  m  lagenta. 

3  For  the  piimoM'  of  new  remoYing  tie  'bondholdew*  apprehenrioiMi  thai  the  amount 
of  the  likin  apecihed  in,  the  agreement  as  aecurity  may  have  been,  detimaaod,  the  prep- 
eTty  and  matenaia  of  the  milway  are  hereby  specially  given  as  a  proviiieiial  Buarantv 
that  the  likm  m  uninipftiMd.  facepting  this,  all  other  conditiona  ahould  be  carried 
out  in  accordance  with  the  loan  agreement.  In  the  future  whenever  the  Chines© 
ifOvefnm«nt  m  ab  e  to  demonstrate  that  the  likin  is  not  only  unimpaired,  but  assign- 
able by  the  central  Government,  or  to  find  some  other  suitable  aecurity,  then  the  said 
gimiinty  of  the  aecurity  shall  he  immediately  canceled  and  annulled  and  it  shall  be 
unneceaaary  to  aubrtitute  thia  with  any  other  guamnty.  In  the  event  of  the  Chineae 
Government  dmwingun  new  regulations  consequent  upon  the  abolition  of  likin 
■Ihe  same  shall  tm  mmed  out  in  accordance  with  article  9  of  the  loan  agreement 

\  By  article  14  of  the  loan  .agreement  auditors  are  to  be  engaged  by  the  banks  for 
theinapection  of  the  accounts.,,  Theirduty,  a8.ama.tterof  coume,  willbe  toin\'eat.igafo. 
to  coiwil.t,  and  make  enqitinea.  They  should  therefore  be  in  constant  attendance 
at  toe  Kailway  Accounta  Office,  so  that  they  may  be  closely  connected  and  acquainted 
with  the  affwra  relative  to  their  office,  and  they  shall  continue  to  function  durinff  the 

T\l  tLT!iT*'T  Ti^/?5  aft^e»TJ«^  M  the  mertgwce  of  the  railway,  referred 
to  in  heading  No.  .3  of  this,  letter,  shall  rem.ain  in  for«».  In  case  of  doubt  as  to  the 
employment  of  loan  funds  or  of  any  milway  revenues,  'then  tiie  auditors  arc  empowered 
to  suspend  myment  of  remiisitions  until  satisfactory  explanations  are  received'  by 
tJiem  from  the  managing  director  and/or  the  director  pneral.  It  has  already  been 
decided  that  nulway  tccounta  shall  be  kept  in  ChineSetnd  English  in  accordance 
with  njodern  methods.  China,  actuated  by  the  desire  to  have  accounts  kept  so  that 
they  shall  he  clear  for  auditing,  will  hereelf  forthwith  engage  experienced  foreicn 
accountants  whose  exectiti.ve  'power  and  appointment  to  the  various  milwav  sections 
shall  be  entirely  and  exclusively  controlled  by  the  director  general.  The  director 
general  shall  have  the  sole  power  of  engaging  or  d.iBmisainff  the  .accountants..  Theae 
ai^pointments  are  made  by  the  Chineae  Government  and  lave  no  concern  whatever 
w.ith  the  loan  agreement. 

With  regard  to  the  control  of  the  railway  material  dming  ilie  time  of  construction 
It  18  necesaary  to  make  proper  armngementa.    The  managing  director  and  the  engineer 
m  cHiel  ahould  aelect  a  foreign  engineer  to  be  stationed  at  the  store  yards  to  control 
Bupervise,  and  .keep  records  and  in  the  event  of  dm/mm  'lim,  or  misuse  the  managing 
d.m^tor  and  the  engineer  ,in  chief  ahal.i  be  reaponfiiWe!  ^  ^ 

The  above  points  having  been  mnlimlly  determined  upon  verbally.  I  have  to 
ri!rl!!!f*  ^*'"T^®  repr«ent»tivea™will  prwnpay  replv  and  proceed  to  carry  out 
the  .agreement  and  ih.us  avoid  further  .Ions  upon  the  part  of  the  railwaya 
With  .compliments,  etc, 

Chu  t!Hi-CiniiM, 
Mvmkr  of  Cowmmnimi&m, 

XDU  m  TSI  BABSS. 

To  Ihe  Honomble  Ifr.  Chu  Cm-CmiM,  .F.«kimo,  MmA  S,  ms. 

Miniskr  of  Communimiiom, 

Sim:  Wehave  the  honwr  to  jicfawwledge  receipt  of  your  letter  of  the  1st  instant 
.setting  forth,  under  four  headingp  'tie  'procedure  which  haa  been  agreed  unon  tor 
carrying  out  the  pmmam  of  the  Hukuang  Railwaya  loan  agreement  [the  four  hSdincs 
outlining  the  method,  of  niocedure  are  here  repeated],  ' 

In  reply  we  have  the  honor  to  state  that  we  are  now  prepared  to  armnge  for  the 
tiansfer  of  loan  funds  to  China  for  purpoeea  of  survey  and/or  c^truction  in  amounts 
.as  may  be^  neceMi.ta.ted  by  the  progreaa  of  the  work. 

Arwngemente  are  now_  being  mjide  for  the  engagement  of  auditors  in  terms  of  the 
loan  agreeaient,  Md  pwiiiK  their  appointment  we  are  prejpared  to  designate  membere 
of  our  banfa'  etais  in  Hanfiiw  to  act  proviaionally  as  aucfitore  for  theBupeh-Hunan 
section  of  the  Canton-Hankow  Ime  and  the  Hupeh  section  of  the  HankowSzechwan 
line  .respectively.  ^^*^v«w»i* 


APPENDIXES. 


OijJL 


We  shall  be  glad  to  learn  from  you  as  eoou  as  possible  the  names  of  the  foreign 
accoitntanti  whom  it  is  the  intention  of  the  Chinese  Government  to  engage  in  accord- 
imce  with  the  proviaiona  of  heading  No.  4  above. 
We  have  the  honor  to  be,  Sir, 
Your  obedient  servants. 

For  the  Hongkong  &  Shanghai  Bank, 

E.  G.  HiLLIER. 

For  the  Deutsch-Asiatische  Bank, 

H.  CORDES. 

For  the  Banque  de  I'lndo-Chine, 

R.  Saint  Pierre  Casenavb. 
For  The  American  Group, 

F.  H.  McKnigitt. 

MEMOBAHBA  OF  SEPTEBCBEB  12,  1913. 

DIEECTOR-GENEBAL  FENO  TO  BEPRESENTATIVES  OF  THE  FOUR  GROUPS. 

Peking,  lith  September,  191.3, 
Gentlemen:  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of 

September  4  with  reference  to  the  omissions  to  be  made  in  the  draft  memorandum  of 

September  3,  Article  IV,  paragraph  (e),  and  in  the  annex,  Article  II. 
It  haa  now  been  agreed  to  omit  the  whole  of  the  two  clauses  above  mentioned. 

I  intend  upon  my  return  to  Hankow  immediately  to  embody  the  terms  of  the  two  aaid 

clauses  in  the  departmental  regulations. 
The  two  clauses  in  question  read  as  follows: 

MEMORANDUM  I,   ARTICLE   IV,    PARAGRAPH     (e)   (dRAPT  OF  3D  SEPTEMBER). 

"The  mode  of  transmitting  all  funds  required  by  the  engineer  in  chief  for  his  district 
engineers  for  survey  or  construction  expenditure  shall  be  settled  by  the  managing 
director,  in  consultation  with  the  foreign  accountant  concerned,  with  due  regard  to 
their  safe,  economical,  and  speedy  transmission,  full  consideration  being  given  to  the 
recommendations  of  the  engineer  in  chief. 

**The  district  engineers  shall  receive,  take  charge  of,  and  account  for  all  funda  sent 
to  their  districts." 

memorandum   n,   article  2   (draft  OP  3D   SEPTEMBER). 

"District  en^^neers  will  have  charge  of  all  stores  and  materials  in  their  districts,  and 
will  be  authorized  to  call  for  tenders  where  necessary  for  construction  work  and  to 
submit  the  same  with  their  recommendations  to  the  engineer  in  chief  for  selection. 
The  engineer  in  chief  will  submit  hia  selection  to  the  managing  director  for  approval 
and  aanction,  which  decision  will  be  given  with  all  possible  dispatch  in  order  to  avoid 
delay  in  construction." 

I  have  the  honor  to  be,  gentlemen, 
Your  obedient  servant, 

Feng  Yuan  Tino. 

Peking,  12th  September,  191$, 
To  the  Hongkong  and  Shanghai  Banking  Corporation, 
The  Deutsch-Asiatische  Bank, 
The  Banque  de  I'lndo-Chine,  and 
The  American  Group. 

Sirs:  With  reference  to  the  memorandum  of  procedure  for  transfer  and  expenditure 
of  funds  and  auditing  of  accountain  five  articles  with  the  annex  regarding  construction 
and  purchase  of  material  in  two  articles,  for  the  Hukuang  Railways,  as  agreed  to  in 
our  meetings,  I  beg  to  enclose  you  herewith  copies  of  theae  memoranda  for  your  infor- 
mation and  acceptance,  and  ahall  be  glad  to  be  favored  with  your  reply  confirmino^ 
the  same.  ** 

I  am,  sirs,  your  obedient  servant, 

Feng  Yuan  Ting. 

„,     „         ,  ,    „    „  Peking,  12th  September,  191S, 

The  Honorable  Mr.  Feng  Yuan  Tino, 

Director  General  Hankow- Canton  and  HankmjihSzechwan  Railways. 
Sm:  We  have  the  honor  to  acknowledge  receipt  of  your  letter  of  to-d^y's  date, 
inclosing  for  our  information  and  acceptance  copy  of  the  memorandum  of  procedure 


' 


■ 


332 


lAILWAT  MATEBIAM,  IQITIPMENT,  AND  SUPPLIES, 


Jt  *ZS'rSl2^  i  ^''^'/''^  "^^  Of  accoEBte,  in  five  articles,  with 

toe  annex  remrding  coMlractmn  and  pureliafie  of  materiala  in  two  articles'  tat  thS 

Hiikiian£  Railwiys,  as  aweed  to  in  our  meetings. 
In  reply,  we  have  the  honor  to  confirm,  our  acceptance  of  the  same 

We  have  the  honor  to  he,  sir,  uii.  tmuw, 

Yonr  obedient  servants, 

For  the  Hongkoi^g  and  Shanghai,  BanMpg  Corporation. 

B.   G.   HlLLIER,, 

For  the  Dei1ach-ABi,atische  Bank,  ^^^' 

For  the  Bamjne  de  I'lndo-Chine,  ^  ^'  ^°''^^'^«* 

,^-  R  St  Pierre 

For  the  International  Banking  Corporation, 

_,  D.  A.MENOCAt, 

Manager  on  behalf  of  the  American  Group. 

imiomniiniif  OF  raociDumi  fob  the  raAirsFti  ,and  ,ixpiiiBrrTOi 

OF  FUHBS. 

loJ?  ^^,  ^  ^  into  operation  the  terms  of  the  letters  of  agreement  of  March  1  and  3 
1913,  the  following  rules  of  procedure  for  the  transfer  and  expenditure  of  funds  in  five 
clanaes  and  the  annex  thereto  regarding  coEstmction  and  purchase  of  material  in 

two  ctases'  have  been  ,agreed  upon.  ^  maienais  in 

1.  In  the  second  half  of  each  month  estimates  of  construction  and  administrativ© 

the  sections  concerned,  ba»d  upon  the  forecasts  (vide  also  memorandum  reeardiM 
constrnctjonj  etc)  supplied  to  tfom  by  the  managing  director  and  engineerTdiiS 
2ri?!f i''^''^^-!T^^  ""^  T'^f  ^  ^'^''^  *~  to  l^'atlditd  thereto) .  ffi^timate 
TOuc^XXo^^      *  Btatement  prepared  and  signed  by  the  foreign  accounlS 

(a)  Available  baLice  at  the  credit  of  the  construction  account  concerned  on  date  of 

leport. 

(6)  Actual  cash  balmnce  of  al,l  imprest  accounts. 
Si  ^PF?^™ate  expenditure  until  the  end  of  the  current  month. 
Aim^a     ^^^"^  **^  *^  Hukuang  Government  Railways  accounts  in  Europe  and/or 

2.  Funds  can  not  be  expended  for  any  purposes  other  than  those  for  which  thev 

were  requisitioned  in  the  estimate.  Should  It  be  found  that  additional  funds  Z 
required  for  unforeawn  continMncies  during  any  month,  such  funds  miwt  b^ 
requisitioned  for  under  a  supplementary  estimjite,  to  be  dealt  with  in  accordance 
with  the  ordiiiJiry  procedure  for  monthly  requiaitioiis.  "ccoroanc© 

3.  The  Dionthly  estimates  and  statements  above  mentioned  shall  be  submitted  for 
»nc  ion  before^the  20th  0  every  month  to  the  director  general  of Te^lwi^  ^ 
Hankow,  who^has  been  duly^  emijowered  by  the  Ministry  of  Communications  to  act 
as  itB  representative,  and  copies  will  be  forwarded  in  due  course  to  the  bank  and  audi- 
tors  concem«l.  "  *""■*    • 

th^Ta™  toiL''^,^"l?i^n  ?r*  estimates  and  statements  and  after 

lllJ^lu^^  "^TT^  r*.  *'!  ^***  <iMP«tel»  hy  the  auditor  concerned,  the  director 
general  will  dnrect  the  banks  to  trauifer  to  China  an  equivalent  amount  from  tte 
loan  funds  to  be  credited  to  the  construction  account  concern  J  '^^'""^  "^^  ™ 
fJlZ  T^H^uf"^^  ^^  provisions  of  article  14,  paragraph  5,  of  the  loan  agreement 
for  the  forward  settlement  o!  exchange  still  holds  good,  subiect  always  to  the^mouSs 
settled  bein^based  upon  aijproximate  monthly  fai£»iti  by  iedepartoentsconS?^ 

4 .  Funds  haying  passed  into  construction  acoonm  are  then  available  for  expenditure 
ill'J!lr«t*  1    I?*'  following  procedure  devised  to  meet  the  conditions  oHhe  lo^ 
aaeement,  article  14.  paragraph  §  and  the  letters  of  acnement  of  Ist  and  3d  March 
which  require  that  "the  aooountB  of  the  railways  ahiOl?©  kept  in  English  and  ChS 
iucMtS   ""^^  accepted  modem  mcthoS."  tad  that  "they  iiall  be  cl^  for 

(a)  All  bills  and  pav  sheets  must  be  certified  by  the  heads  of  the  departments  . 

ZrZt;  ™f^'"il^  A  ^  ""^^^^^  ^  """"^^  ^I  *^?  ^""'^Sn  accountant  before  ' 
™  j*^  ?1  "^^  paid,  with  the  exception  of  paymentu  under  clause  5  of  this  memorandum 
/I  ?  lis®  expenditure  incurred  by  diatrict  engineew  from  their  imprest  accounts 
(l>)  Wherever  practicable,  paymenti  must  be  eHeisted  by  checks;  where  pavnient 
by  check  m  not  practicable  sudi  payment  wMl  be  made  in  cash  by  the  cashier  from 
mo  imprest  account  to  bo  fumiahJ  U  him  by  the  foreign  accountJt 


APPENDIXES. 


OuO 


(f)  The  cashier  will  keep  a  cash  book  for  recording  all  payments  made  by  him. 
At  the  close  of  each  day  ho  will  hand  to  the  foreign  accountant  a  copy  of  his  cash 
account  for  the  day,  accompanied  by  all  vouchers  for  entrv  in  the  cash  book  kept 
by  the  foreign  accountant  together  with  a  statement  of  his  balance,  and  will,  if 
desired,  produce  his  cash  for  inspection  by  the  auditor. 

(rf)  All  ciiecks  shall  be  prepared  by  the  foreign  accountant  and  shall  be  certified 
as  correct  by  his  signature.  He  will  then  present  them,  toEjether  with  the  relative 
documents,  to  the  managing  director  for  his  approval  and  signature. 

After  the  managing  director  has  signed  the  checks  they  will  remain  in  the  chaige 
of  the  foreign  accountant  who  will  be  responsible  for  the  safe  delivery  of  the  checks 
or  their  proceeds  to  the  payee& 

(«)  Funds  required  for  land  purchase  as  shown  in  the  engineer-in-chief's  monthly' 
forecast  shall  be  paid  by  check  to  the  Land  Office  in  amounts  to  meet  immediate 
requirements,  and  the  relative  land  transfer  certificates  must  be  sent  by  the  managing 
director  without  delay  to  the  foreign  accountant  for  comparison  and  entry. 

5.  The  expenditure  of  the  director-general's  establishment  will  be  a  fixed  monthly 
suna  of  $15,000  to  be  paid  against  the  receipt  of  the  director-general. 

The  salaries  and  allowances  of  the  managing  director's  establishment,  not  including 
the  foreign  accountant's  department,  shall  also  be  a  fixed  monthly  sum  to  be  arranged 
from  time  to  time  with  the  auditor  concerned,  and  to  be  approved  by  the  director 
general. 

This  amount  will  be  paid  against  the  receipt  of  the  managing  director. 

MEMORANDUM   REOARDINO   CONSTRUCTION   AND  PURCHASE   OP   MATERIALS. 

1.  In  order  to  secure  efficiency  of  construction  of  the  railways,  which  at  present 
forin  the  sole  security  for  the  loan,  all  executive  work  comprised  under  the  ten  main 
heads  of  t:he  form  of  monthly  forecast  approved  by  the  director  general  and  attached 
hereto,  will  be  earned  out  bv  the  engineer  in  chief,  and  all  orders  for  the  purchase  of 
matenals  shall  be  prepared  by  him,  subject  always  to  the  authority  and  approval  of 
the  managmg  director. 

2  In  the  case  of  all  orders  for  the  purchase  of  materials  (except  Chinese  materiala 
and  poods  manufactured  in  China  on  which  no  commission  is  chaigeable)  copies  of 
requisitions  relatmg  thereto  shall  be  handed  to  the  purchasing  agents  mthout  delay 
m  order  to  enable  them  to  make  the  necessary  arrangements  for  calling  for  tendera 
or  placmg  the  orders  on  the  open  market,  undei-  the  terms  of  article  18  of  the  loan 
agreement. 

Pbkino,  12th  September,  WIS. 


AMWiJii  ».-SSUPINGKAI.CHENGCHIATUN  RAEWAY. 

Aomnmrr  fob.  comstbuctioh.' 

ITfimalatioa  ol  the  CMneae  text.l 
TMi  Mreemont  m  mado  »t  Peking  on  the  »th  daj  of  Dwember  IQIR  Mfh  vi»r  «r 

Mm4»?o*?  Kn2?™^'^h„*ir^"f ''*','^"*'  the  Government),  rep««l.ted  by  the 

rf-Ii~»E!L;'^^  .  (ne'^'M'tOT  called  the  Banki,  of  tho  other  part  iave  oon- 
S2?2i£'!r^  tnem^lves  tte  present  agreement  on  the  ba»la  of  the^mi™t^f„ 
^^''.;"^,'?,7?'  """P?  ^f!^"^  tSe  Chines  and  Japanaee  GovCT^enta  on 

rfit^;^"  TJllPff^"'  "^  ?  '"'  *.'"'  ''"''''*"S  «•' »  '»i'*«y  from  Seupingkai  to  Ohen^ 
cbuUiit.    After  the  completion  of  a  survey,  the  route  will  be  fixed  bvAnri;^^ 

C^provat*  "^  ""^  *^''  "^""^  "^  '^'^  to  Ae Ifth^ofc^u^J'^^^ 
««W  for  Sl%3d^"^f'tS*e'l^"\„MtJ^  f^'"''  mentioned  ia  eet  .p«t  exclu- 

«i»i,,8«  for&e  opemtioEof  the  road  and  for  ArpayZSriTinT^on 

•t  Iwo  dtimi;  the  period  of  conatniction  of  the  saTi  road        ^^^  ^^^ 

llio  work  must  he  etarted  not  later  than,  six  months  alter 'the  mmuas  of  thi«  mrr^ 

mm,©     tfefore'  the  «Q:d  of  six  months  the  bank  will  p  ace  at  the  disooaitinn  n1  iZ 

director  general  of  the.road  a  aiim  not  to  exceed  200,o5o^  ven  as  an  a^^S  un^^^^  \ll 
loan  which^money  will  be  deposited  in  .lapan  or  remitted  ^HSihia  in  acTdaica 
with  tiie  mstriictions  of  the  director  g«n«iL    The  sum  so  advaiS  to<^her  ^"th 

!t!2'Tll^'''*''>';if  ,*;\"'*^*?^^^  -■econnt  at  a  rl'lTo^e  V'^^'c^^ 

annum   unll  be  ji.|thhe  d  by  the  bank  from  the  proceeds  of  the  first  bSncieR^uS 
The  advance  will  be  paid  in  Shanghai  taols.  *  ^^  ****'"*^^'  ''^''*'^- 

eetf^t'J^nJ'y.T  '*"''  %«\P'«"<^  Joan  fi«  'l^e  calculated  at  the  mte  of  5  per 
rent  per  anniim  on  the  nominal  value  of  the  bonds  from  the  day  of  issurof  the  lo?n 
and  the  payment  oi  interest  to  the  bondholders  will  be  made  semLTufllv     D.S 

Ae jieriod  of  th«  buildinc|  of  the  road,  the  Governmenr^ll  W  tC?n  Jit*,t  eS 
from  the  prmapal  of  the  loan  or  from  other  sourcei,  at  its  diicwtion  ^nd^Ln  tl^ 
biuldiBg  M  finidiod  the  interest  will  be  paid  first  fim  the3Zt^  AAhL!^!i      5 

which  as^above  stoted  will  be  computed  Crom  the  day  the  loan  wm  ^liirl ^^i  kl 

payable  14  days  in  advance  of  tho  expiration  of  eaciL  f-y«2  temTrLrfanco 

with  the  amortization  table  annexed  to  the  agreement  ^^  ^™  ^  atcordance 

Arr.  5   The  term  of  the  loan  ahall  be  «  years.    'The  amorti/ation  of  th<^  nrir„.fr.«i 

^A  thramarH«ri  Lm  ^"^  ^^^  ^  advance/in  accordance 

wim  tne  amortization  table  (except  in  the  caae  anticioated  in  the  sixtK  artiT«  ^* 
the  agreement),  and  will  be  piid  from  earnings  of  tto  3  or  frli  ot^^^^ 
revenues,  at  the  discretion  of  the  Government!  Government 

AiiT.  6   Tbe  Government  reserves  to  itsctll  the  rkht  upon  noticr  to  the  hnnlr  f« 

me  loan,  to  pay  off,  if  it  desires,  before  maturity,  all  or  part  of  the  DriiicioalwhiVh 

has,  not  been  amortfeed,  upon  condition  that  the  toldors  of  thrbonde  a^^L  pi^^ 

« Wmm  ■Qm  Wm  Emtmm  Etr tow  for  MnyaWT^^ 


APPENDIXES. 


J 


IS&'on^Vv:^^^^^  -I-  of  the  bonds  that  is  upon 

after  the  day  of  iisue  ofthe  l?aii  ihl  IZ^^^\  ^^  *^-®  ^^  ""^  ^®  twentieth  year 
araortizatioii  i>avmAnf«  iSti,  I '  •  Government  may  mcrease  the  amounts  of  the 
S  rnv^^^^^  P^f;T  *  P^?«^i^m  over  and  above  the  par  value 

Sn^Tt^inds  urnT.''?*^  T"  ^^'  "^T^  *^"^  ^y  "^^^"«  0^  *  supplementary 
dm^ls  ^  ""  ^^  ^y^  ^""^^  "^  ^^  prospectus  of  the  loan  fSr  tJie  usuil 

prkidpaLmis^k)^^^  '^\ir  T^"  ^^^  payments  of  the  interest  and 

LTZuk  the  di?ecS^^^^  '  ^f'^^f  '^'  agreement,  to  the 

14  dav«  in  nriTmtr^^  ^  general  accordiug  to  the  attached  amortization  table  but 
artivirR  ^i.!?P  °^®-    ^**f  payments  to  be  made  before  maturity  in  accoKlance  m'Si 

Wments  in l^W ^f  thCT^ve  «,,^f,S2^T'T°'  '^''"  ^^'^  *«  "^^^  ^  """^e  such 
IL  gold  fun^s  ahill'^^t  We^^nt&'r^e  aX\??h^1^^^  ^^'^ 

F^iaS'i^°i^tr™"'  'V°^^  4*^rbT.tleVd^n."id"a^« 

v\RT.  8    1  he  Government  guarantees  the  rcular  navmenf  h^n,  ^  ti,„  ;_»       »      j 
of  the  pnnciDal     In  ra«o  tho  ->mn„^t  „r  *i.  T        paymeni  ootn  of  the  mterest  and 

not  be  suSt  fo7thnboiLZ,^i"ii*!  '"'^  ?'  *t  T«""«  ^^"^  <*«  ">«!  d^" 
necessary  m^rS  ^''i^^^Z^^t^^Z'^' ^L?°^^"'''''K'^]i  ^"P^^e 

befo^gin'g  ^tle"SJ°o^w1.i^"4  bKo  ^tTt  ^l/'^T^"'  "'^P^-i^ 
revenues  of  the  road     In  caao  a  m.n^o™i!f..i^i        •  ,  '"'"f®.  and  also  upon  the 

of  article  15  o?  IhU  agree^t  Z^^  ^Sr^H^'"/"'"''"'**'*  Tf^^^^  to  clause  1 

tions  or  with  the  Chinese  Mnistpr  at  Tn£^  >ru  i.  j  ^^inister  ol  Communica- 
Chinese  and  JapaneseT^^^'d  iJS^^^  be  printed  in  tha 

Ministry  of  CommmiioaHonTflLn  kI^   signature  of  the  Minister  and  the  seal  of  the 

thebon\thSrrerd"LtS„''Ahe'Stfe^at^«C^^^ 

of  thp  hnn  /""Y<  »r„  i'^  I  "y,-  '  °*  """nds  will  also  be  signed  bv  the  reorewntaf i™ 
OI  mo  bank.    If  bonds  are  lost,  damaeed  orsl^Ipn  tho  k.„i7^ii^         i"    ,  .  ® 

the  .Minister  of  Communication,  o7thrrv,;„o!„i?P'r  •  r  ^^  immediately  notify 
it  to  advertise  in  th"preL  th^rnvme^^r^^h"'"*'  ""  ^?^'  ''*'°  «^"  authorize 
to  take  the  necessai^SiSi  rSrmitvUh.lJff."^'  ??.^  ^^  T''^'  ■"«>  ^"^ 

rrj^^troriv'srSlS^ld^^^^^^^ 

op^Iions  eoXte5li;hte'ZmeL''of\'h  ir '  *'"'  J'""??  '*'*  ""'P"--  ""d  "l*  »» 
from  Chinese  taxation  '^^''^"'^^"""P*'*"'*  "'te'est.wiU  be  exempted 

.hf  ^ayL'enf  ifX^prtl^n'd"  l^'t^r^^r^^t^^l  ^Ll^^rr^'"^  »'  *«  'T,  -" 

?r;ii^^eSisrar3iSH-S^^^^^ 

and  also  to  cooperate  ^th"b^  bank  in  air,,»,t^  't"  ^-  *«  P^^^P^c'"*  of  the  loan 
Art.  13.  The'^bank  ^1  have^he  rSrht  to  12,1  ^L*""^^  °"  *^\^^  "'  ^«  '»««•• 
in  several  series,  depeS.uDan  the^^^t  nf^  the  entire  loan  either  at  one  time  or 
M.VI  also  upon  the  cStiSn  of  Ae  mon?v  Si^ket  ThoT'  ""  ^"^f^ctory  execution, 
the  bonds  the  i^ue  price  lerid^.rcSoTti'^'-r  ce?t'o?rhehZ^,lttiir'"^'°K' 
will  be  rctamed  by  the  bank  as  indemnifieaSu  for  the  exp^^  of Z^th^  iol^'"'' 


liJLWAY  MATBEIAIiS,  BQOTPMENT,  AMD  SUPPMBS. 

AWT.  14.  The  proceecls  of  the  loian  ahall  he  depori'ted  to  the  credit  of  the  railway  in 
the  Yokohamft  hirnich  of  the  bank  tt  the  times  mdicatwi  in  the  prospectus  of  the  loan 
lor  the  stibecribefB  to  the  eame. 

The  Yokehaint  bnuich  of  the  bank  will  pay  upon  the  credit  balance  of  these  funds 
interest  at  the  mte  of  S  'per  cent  'per  annum,  and  on  sums  transferred  to  China,  the 
locaa  branches  will  my  the^  interest  that  is  cwstomary  on  roch  accounts.  The  bank 
will  retain,  at  the  disposal  of  the  director  general,  all  sums  realized  from  the  sale  of 
the  bonds,  with  the  interest  thereon,  deducting,  however,  the  sums  necessary  for  the 
payment  of  intereil  upon  this  loan  and  commissions  upon  such  payments  during 
the  period  of  construction  of  the  road .  In  the  case  of  payments  exceeding  200,000  yen , 
the  director  general  must  advise  t-he  bank  10  days  before  effecting  the  payment.  The 
entire  loan  is  to  be  expended  for  the  buildinc  of  tne  railway  in  proportion  to  the  progress 
of  the  work  and  as  need  may  arise,  for  whicn  written  requisitions  must  be  presented  to 
the  bank,  signed  by  the  director  eeneni!  and  the  chief  accountant,  with  a  statement 
att»che<i,  iihowing  in  detail  the  obfect  of  the  diab'imeinenlj  and  specifying  the  coat. 
Every  month  the  appropriations  for  the  building  of  the  railway  will  be  remitted  to 
Shanghiai,  according  to  tne  initnictions  of  the  •aifisctor  aeneral.,  and  will  be  placed 
to  the  credit  of  the  account  of  the  road  in  the  said  bmnch  of  the  bank.  The  director 
general,  in  agreement  with  the  bmk,  will  apjpoint  a  Japanese  subject  as  chief  account- 
ant. The  chief  accountant  will  prepare  a  list  of  the  necessary  Chineae  and  Japanese 
clerks  for  conducting  the  book:leepiii|r  department,  and  present  the  same  to  the 
directof  .pneral;  upon  his  approval  of  the  Ifet,  and  upon  the  appointment  by  him  of 
these'  persona,  they  sliall  be  placed  at  the  diBpoaltion  of  the  chief  accountant,  for  the 
performance  of  their  duties  under  his  direction.  The  chief  accountant,  under  the 
Bupenision  of  the  director  general  and  the  managing  difector  of  the  road,  shall  have 
chaige  of  all  revenues^  and  expenditures,  of  the  roM  duriiig  the  whole  term  of  this  loan, 
and  shall  sign,  conjointly  'with;  'the  'managing  director  of  the  'wad.  'all  documents  relating 
to  the  expenditure  of  such  sums.  The  accounts  of  the  road  will  be  kept  in  the  Chinese 
and  Japanese  languages,  according  to  the  methods  adopted  for  the  other  Chinese 
fiilways. 

The  management  of  the  road  will  periodically  publish,  in  the  Chinese  and  Japanese 
languages,  a  statement  showing  the  revenue  and  expenditure  of  the  railway,  for  the 
toformation  of  the  public. 

Am-.  15,  In  case  the  principal  obtained  from  the  floating  of  the  present  loan,  together 


from  Chinese  sources,  the  necessary  funds  for  the  uninterrupted  continuation  of  the 
work,  but  in  case  a  suflicient  amount  is  not  available,  the  baak  may  issue  a  supple- 
■lentary  loan  on  the  same  terms  as  the  loan  provided  for  in  thia  agreement.  If  upon 
the  completion  of  the  building  of  the  road  a  surplus  remains,  such  surplus  will  be 
carried  as  reeerve  capital,  in  conformity  with  article  18,  as  security  for  the  regular 
payment  of  the  principal  of  the  'present  loan. 

liT.  M.  The  building  of  the  road  and  the  management  of  the  road  will  be  entirely 
in  the  hands  of  the  Government. 

The  Government  will  appoint  the  director  general  of  the  road,  whose  place  of  resi- 
dence must  be  near  the  place  where  the  road  fi  being  built,  and  who  will  be  furnished 
with  full  power  to  act  in  the  name  of  the  Government  within  the  limits  of  this  agree- 
ment. Tne  director  general,  upon  agreement  with  the  bank,  will  appoint  as  chief 
engineer,  under  contract,  a  Japanese  subject.  It  will  1  >e  the  duty  of  the  chief  engineer, 
under  the  supervision  of  the  director  general  and  th?  managing  director  of  the  road, 
to  make  surveys,  prepare  plans,  drawings,  estimates,  etr.,  to  direct  the  technical  part 
of  the  work,  to  purchase  needed  materials,  rolHng  etock,  etc.  The  chief  engineer 
will  submit  for  the  consideration  of  the  director  ^nenil  a  list  of  the  necessary  Chines^ 
and  Japanese  technical  staff  for  the  construction  work,  exactly  designating  their 
number  and  their  functiom!.  The  director  general,  up3n  approving  this  list,  will 
appoint  those  technicians  and  place  them  at  the  disposition  of  the  chief  en^eer  for 
the  performance  of  their  duties  under  his  direction.  Appintments  to  the  mmor  posi- 
tions, and  also  dismissals,  will  be  made  bv  the  chief  engineer  with  the  consent  of  the 
director  general  and  managing  director  of  the  road.  As  the  construction  of  the  sepa- 
rate sections  of  the  road  is  completed,  they  will  be  turned  over^  by  the  chief  en^neer, 
to  the  director  general,  who  will  open  them  for  operation  if  this  is  considered  advmble. 
The  traffic  manager  sliall  be  a  Japanese  subject,  and  he  shall  discharge  his  duties  in 
compliance  with  the  instructions  of  the  difector  general  and  the  managing  director  of 
the  road.  The  duties  of  the  chief  engineer  will  cease  upon  the  completion  of  the 
building  t)f  the  road.  The  director  general  shall  then  appoint  a  Japanese  engineer 
whose  duty  it  will  be  to  supervise  the  engineering  department  under  the  orders  of  the 


/ 


/ 


.APPElfDIXBS. 


tftJ  I 


If 


director  general  and  the  managing  director  of  the  road.  The  Japanese  engineer  and 
traffic  mana^r  will  be  appointed,  under  contract,  by  the  director  general,  upon 
agreement  with  the  bank. 

Art.  17.  For  the  purpose  of  guarding  the  railway  line,  there  shall  be  maintained  a 
Chinese  guard  detachment  under  the  command  of  Chmeee  officers.  All  expenses 
connected  with  the  maintenance  of  the  detachment  shall  be  paid  from  the  amount 
destined  for  the  building  and  maintenance  of  the  road.  The  nummcal  strength  of 
the  detachment  shall  be  determined  by  the  director  general  upon  agreement  with  the 
bank.  If  the  detachment  proves  to  be  insufficient,  tlie  management  of  the  road  shall 
request  the  Government  to  said  as  guards  a  detachment  of  troops  of  either  the  central 
or  provincial  Government,  and  the  expense  for  their  maintenance  shall  be  borne  by 
the  corresponding  authorities. 

Art.  18.  The  income  of  the  railway  shall  be  deposited  in  the  bank  on  either  short 
or  long  term  deposits,  and  the  bank  shall  pay  interest  at  rates  arranged  by  mutual 
agreement  between  it  and  the  Government.  The  expenses  of  operation  and  upkeep 
of  the  road  will  be  paid  from  the  revenue  of  the  road;  the  net  balance  of  the  revenue 
will  first  be  applied  toward  the  pajTnent  of  the  principal  and  interest  on  the  loan, 
in  accordance  with  the  annexed  amortization  table,  and  the  surplus  remaining  after 
the  above-mentioned  payments  shall  be  held  at  the  free  disposal  of  the  director  general. 

After  the  completion  of  the  building  of  the  line  and  its  opening  to  traffic,  the  amounts 
desknated  for  the  payment  of  principal  and  interest  on  the  loan  shall  be  handed  over 
to  the  bank  six  months  in  advance  of  the  dates  specified  in  the  amortization  table. 
In  case  the  revenue  of  the  road  is  insufficient  to  cover  the  expenses  for  the  payment 
of  interest  on  the  loan  and  the  liquidation  of  the  principal,  these  payments  shall  be 
secured  by  the  means  indicated  in  article  8  of  the  present  agreement. 

Art.  19.  During  the  period  of  the  building  of  the  road,  a  person  designated  by  the 
bank  shall  act  as  the  agent  of  the  road  for  the  purchase  abroad  of  all  necessary  build- 
ing materials,  rolling  stock  and  other  articles.  The  more  important  of  these  pur- 
cha^s  will  be  made  by  the  director  general  by  means  of  tenders.  It  will  be  the  duty 
of  the  agent,  who  will  act  as  middleman,  to  furnish  the  required  materials  on  the 
terms  most  advantageous  to  the  road,  and  as  compensation  for  this  service  he  shall 
retain  for  himself  5  per  cent  of  the  net  cost  of  materials  jMrocured  in  this  way  from 
abroad.  All  supply  contracts  shall  be  made  through  the  chief  engineer  with  the 
approval  of  the  director  general.  It  shall  be  the  duty  of  the  agent,  who  will  be  respon- 
fflble  for  the  stnctest  inspection  of  the  materials  obtained,  to  select  materials  of  the 
best  quality;  the  management  of  the  road  has  the  right  to  refuse  to  accept  materials 
If  they  are  not  m  accordance  with  the  specification  previously  adopted.  Buildin«» 
materials,  rolling  stock,  and  other  articles  of  Japanese  origin  will  be  given  preference 
before  merchandise  of  other  origin  if  the  Japanese  merchandise  is  of  3ie  same  quality 
•nd  the  same  price;  after  Japanese  matenals,  preference  shall  be  given  to  foreign 
merchandise  recommended  by  the  agent.  Original  bills  for  purchases  of  materials 
and  customs  certificates,  must  be  presented  to  the  director  general;  in  cam  discounts 
tie  allowed  from  the  established  prices,  these  amounts  must  be  credited  to  the  account 
of  the  railway;  the  agent  is  required  to  present  all  vouchers,  certificates  of  manu- 
facturers,  etc.,  required  by  the  management  of  the  road. 

A^de  from  the  above-mentioned  commission  the  bank  shall  not  retain  for  its  own 
profit  any  other  «ums.  In  case  the  management  invitee,  for  consultation,  additional 
•xperts  and  engmeers,  all  expenses  in  this  connection  will  be  charged  to  the  account 
of  the  road. 

To  encourage  Chinese  industry,  materials  and  merchandise  of  native  origin  if 
the  qualiUee  and  pnces  are  the  same  as  similar  goods  of  foreign  origin,  shall  be  given 
the  preference;  for  the  purchase  of  such  merchandise,  of  Oiineee  origin,  the  bank 
snaU  not  receive  a  commission.  Upon  the  completion  of  the  building  of  the  road 
tne  person  designated  by  the  bank  shall  continue  as  agent  of  the  road,  for  supplyinff 
nec^sary  materials,  dunng  the  whole  period  while  this  agreement  is  in  effect;  undw 
conditions  which  shall  be  aftanged  later. 

^^^^A  ^'  \^  ^S  future,  the  Government  deems  it  advantageous  or  desirable  to 
extend  tiie  r^way  Ime  or  to  build  a  branch,  this  work  can  be  done  with  money  ob^ 
tomed  from  Chinese  sources;  if,  however,  foreign  capital  is  wanted  for  that  object, 
the  Gpvermnent  is  obliged  to  give  the  preference  to  the  bank.  The  length  of  these 
additional  lines  shall  be  determined  by  the  Government. 

Art.  21    The  bank,  being  the  agent  of  the  bondholders,  shall  deal  with  the  manage- 
Sf %i°ld  ^  ^      ^       matters  concerning  the  railway,  as  the  representative  of  Sie 

Art.  22.  Should  any  events  of  a  political  or  economic  character  in  the  country 

durmg  the  penod  between  the  signing  of  the  present  agreement  and  the  issuing  of  the 

prospectus  of  the  loan,  which  would  have  an  injurious  effect  on  the  money  market 

ana  cause  a  decline  m  Chinese  securities,  and  in  consequence  cause  the  bank  diffi- 

100229*'— 19 n 


I 


i 


L 


338 


MAILWAT  MATEBIALS,  EQUIPMENT,  AND  SUPPLIES, 


^^f  ^AT^^^^^'f?  ^*»  *«  P«»«t  !««».  the  Government  bv  mntmd  i«mw». 
iiieiit  witli  thelimk  shall  gmat  to  the  latter  an  ext«nSnT.  AffSl  ?L??  ^^^^^ 
out  the  condWoM  of  the  a^eS     II  atX  «ph^^  T^l^ 

loan  has  not  been  ii!iiii«l7the  owiifinf  aTirmJn*  ®  designated  time  the 

1%m  ««*.*.mL«ir:«^rT*         Pf^n*  agreement  shall  be  consideied  as  c&not^Uii 

xne  wjvemmeiit  m  that  case:  «riii  mhiav  tn  tii^i  Konir  *■!,-.     ""°»«™'0"  »o  utuceiea. 

Aw.  24.  In  order  to  secure  a  wide  distribution  of  the  biwida  tli«  Kattir  1.^11 1.-.   • 

ntfu  iondB  win  be  tSSlon,  Paris  anTNeJYoA  mhS  ff„v  ti^  ^  ^t  ''u'''*^ 
of  OA..^^f  ^KT?*,;?*?*"*'.'?*^  '«»  ann^es,  wa«  ratified  by  the  Preddent 

SSrT?^!^"  w.?Lde  by  ^ife^Xt^l^kSltSI  t^4S 

— iT:.!***  'T"*  l?"*!;?*  tipneonient  Is  drawn  m  in  four  cxipies  in  the  Chinese  lammftim 

**«ie«  aqfiH,  the  J^mmw  text  wUlTe  given^prdei«SJ  **  ""* 

December  27,  4tfa  year  of  the  Republic. 

AKHSX  t. 

ciiatun.    With  the  object  of  acconmlSiinir  ihT^JiJTZ^M  °®^P™g™  to  Cheng- 

wmTSS  if£i!!J%'^**^  **^  *^*J^*  ^**'  "*  consequence  of  the  European  war 

Z?^rfSlii*Zll!l'^^^  r"?3r  iiMrkel  :nici^:  lifiiiiiityrit  is  acknowledgS  thS  ITS 
SliSStX^Sffi^^  '*  PITSt  ^«  ®«^«™»««t»  having  it  in^iewto  stoS 

Airr.  2.  Tiii  biiik  iiiMfim  to  Itoelf  th«  right  to  return  to  itself  the  ammmf  »A^^,.^ 
wth accrued  intumt, in locordance withSe first  mrt of  SSx^lflsTZ^^^l^ 
famn  the  ,n»nit  nceiiFeii  from  the  sale  of  bonds ^The  Gwe^^nt  mnH^T^'t 
mwt Jecide  by  mutual  agreement  the  quesd^ni  the  f^lSr^d  Sl^^^ 
■•Hi'  'fif  iMiing  'the  boniiir  h«'»«^"  «•  «*«  leaaioMity  ana  advantageous- 


rkm  w««ii^  W«X«T-«  A^  •««»-*,  «wiuir™g  every  Kind  of  material  and  other 
Ihe  wSl!^  ^'  "^  ^  ^^  J^^y^ent  of  Interest  whfle  building  and  for  opm^ 

irii"  J*th?dSS^to*?i!i®r*'*^  on  thi«  advance  will  be  effected  14  days  in  ad- 
^Z^  !5  A  a'  "?"  *^®  amount  of  the  advance,  during  the  period  of  con- 
!^^«  rf  a!  ^\^AF^  .completion  of  the  const^ction^fi^st  oHTtemX 

ZSSiTlStr^  ^  *"•  "  ^  they  lOiould  be  insufficient,  from  othToov! 

ZIi^-ii^*l       J5**?*^T^^®'  II  this  advanee  and  also  the  revenue  of  the 

the  f«v«;i«r^??il!?^^       lasue  of  the  bonds  of  the  Ssuplnglcai-Chengchiatun  Rail  way 
the  revenuea  of  the  railway,  and  also  aU  property  of  the  roSd,  movajBte  and  immovrWe; 


APPENDIXES. 


339 


&le"C:^"^^  Z^^^Clt!^.^J  ^  ^'^  ^*-'«'  **"  '>«  <^-<^ered  as 

the  bLk  fl^acZS?  o?'tht  ESfetnih^^^^^         ^^  ^^^^^^^^^  »>«^--h  of 
pay  the  usual  interest  on  tL  S^t     If  thp^d^  ^'i?*  ^«  ^^^^  ^i» 

Kyt'in^'XLTe^  ^^^'  ^  ^  ^=-^^^^4^^^ 

f/fe  sJrv'^/sS^t  ttT^I^^^  P-i-tion  to  the  reouirements 

the  bank,  upon  the  presentetion  to  it^f  a  wfi  ten  ord^^^^^         T?^^  ?""  ^^  P^^  ^^^ 
and  the  chief  accountant,  supplemented  bvdo^^im^ 

kind  and  coat  of  the  work  wMcris  being  Idertok^^^^^        ^^^^  designating  the 
December  27,  4th  year  of  the  Republic. 
Minister  of  Finance. 
Minister  of  Communications. 
December  27,  4th  year  of  the  reign  of  Taisho 

RepreeentaUve  of  the  Yokohama  Specie  Bank. 

O 


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